PNN: Economic managers in Pakistan have rejected a proposal to extend concessional gas tariffs to the glass sector, denying relief to a key manufacturer.
The Ministry of Commerce, in a recent meeting of the Economic Coordination Committee (ECC), said that in pursuance of a judgement of the Lahore High Court (LHC), dated April 10, 2025, it had presented a summary to the ECC on July 25, 2025. The ministry argued that the relief granted to Ghani Glass in terms of tariff concession on gas or re-gasified liquefied natural gas (RLNG) was untenable.
The ECC directed the ministry to approach the Attorney General office for pursuing the case expeditiously in the Supreme Court. In compliance with the decision, the ministry held meetings with the Attorney General office and the Ministry of Law & Justice.
During a meeting chaired by secretary commerce, both sides were of the view that the relief granted by the LHC to Ghani Glass was substantive and unlikely to be completely overturned by the Supreme Court. They said that LHC directives could be fully implemented through administrative actions without resorting to legal recourse.
It was, therefore, agreed that a fresh summary explaining the rationale for the scheme and reasons for not contesting the matter further may be submitted to the ECC.
The Ministry of Commerce stated that the LHC had given directives to develop a uniform policy to ensure that only export-oriented industries receive tariff concessions rather than sector-based classifications that allow non-exporting industries to benefit unfairly. It further instructed officials to include the glass sector in export-oriented industries and grant Ghani Glass a concessionary tariff in respect of gas/RLNG price.
The court directed to look into the possibility of providing Ghani Glass the concessionary tariff retrospectively from the date of filing the case (ie, 2019), as was available to the five export-oriented sectors. The court also called for aligning gas tariffs with prices prevailing in comparable international markets for exporters, including Ghani Glass.
Keeping in view the above directives, the Ministry of Commerce submitted the following points:
The Federal Board of Revenue (FBR), vide Statutory Regulatory Order (SRO) 1125(I)/2011, granted zero-rated sales tax status to five key export industries – textiles, carpets, leather, sports goods and surgical instruments.
In 2018, the Petroleum Division extended concessionary gas/RLNG tariff of $6.57 per million British thermal units (mmBtu) to exporters of the same sectors. These sectors were later classified as export oriented by the Ministry of Commerce due to their substantial share in Pakistan’s export basket.
The commerce ministry said that the share of the glass sector in exports was insignificant at that time and remains so even today. The concessionary tariff previously granted to the five export-oriented sectors was discontinued in 2023 and is no longer available to any sector at present.
Efforts are being made to enhance competitiveness of the entire export industry in the international market through various interventions, including enhanced market access, tariff rationalisation and trade facilitation, the ministry said.
In view of the foregoing, it was stated that the claim made by Ghani Glass for concessionary gas/RLNG tariff was untenable and may, therefore, be rejected.
It is pertinent to mention that the LHC directives had been complied with as the matter was presented to the ECC for consideration within 60 days. Furthermore, the CPLA (Civil Petition for Leave to Appeal) filed by the Ministry of Commerce in the Supreme Court will become infructuous in due course if the matter is disposed of by the ECC.
The Ministry of Commerce solicited approval of the ECC for the proposal. During discussion, the ministry presented the background of the case and apprised the forum of its consultations with stakeholders, including the Law Division and the Attorney General, and the filing of CPLA in the Supreme Court.
In light of those consultations, the ministry requested the ECC to consider rejecting the claim made by Ghani Glass for the grant of concessionary gas tariff, being untenable, particularly with retrospective effect. The ECC considered the summary and approved the proposal.