Gas Infrastructure Development Cess to hit common man, spark inflation: Pakistan Businessmen and Intellectuals Forum

Islamabad, May 21, 2015 (PPI-OT): President Pakistan Businessmen and Intellectuals Forum (PBIF) and former provincial minister Mian Zahid Hussain on Thursday said GIDC will hit common man and businesses triggering inflation and defaults. It would increase cost of doing business, hit exports and push many businesses to default which will result in unemployment and lost revenue, he said while speaking to the business community.

Mian Zahid Hussain said that imposition of GIDC was result of failure of the gas recovery system and dwindling exports. Many power plants use natural gas for production that would jack up prices of electricity striking masses and businesses alike, he said.

He said that imposition of GIDC was condition set by the IMF for release of eighth tranche of loan due shortly, adding that mismanagement in the gas companies was a reason behind the controversial move. He said that Sui companies are responsible for gas theft and losses of around 40 billion annually and the same are blamed for blocking the LNG project. These companies are following policy to bleed masses white to maximise profits.

The veteran business leader said that authorities are pushing policy to reward landed nobility on the cost of poor and industry which has widen the gulf between rich and poor. Therefore, many small traders prefer to avoid paying taxes due to lack of trust between business community and tax administration which has compelled country to seek assistance from foreign lenders.

He said that Pakistan’s exports continue to decline due to poor performance of related institutions including TDAP which results in foreign loans to balance the budget. Critical departments including TDAP and gas companies are not discharging their duties forcing government to pick begging bowl and accept harsh conditions of lenders. He said that government should ensure proper use of GIDC funds, consider reducing its rate and release refunds so that business activities could pick up.

For more information, contact:
Mian Zahid Hussain,
President,
Pakistan Businessmen and Intellectuals Forum (PBIF)
Tel: +92-343-2226888
Tel: +92-300-8233364
Email: ceo@kenlubes.net