ISLAMABAD: The Punjab government has expressed reservations about the proposed incentives in Pakistan’s LPG Policy 2024, citing potential impacts on its share of federal tax revenues.
Sources revealed that Punjab has requested a detailed report from the federal government on the financial implications of the proposed tax incentives within the new LPG policy. The Shehbaz Sharif-led administration has revived efforts to implement the policy, which had previously stalled during the caretaker government’s tenure.
The Energy Department of Punjab has specifically sought clarity on how the fiscal measures and concessions outlined in the policy will affect Punjab’s share in federal tax collections, particularly concerning royalty payments on LPG based on market value as decided by the Council of Common Interests (CCI).
The Petroleum Division’s draft policy includes provisions for government intervention in LPG allocations, proposing that up to 15% of production be dedicated to Sui gas companies and marketing firms without a bidding process. This has drawn criticism from LPG producers, who argue that such measures are anti-competitive and contrary to the spirit of deregulation.
As the federal government pushes to finalize the LPG Policy 2024, the concerns raised by Punjab could influence the policy’s final form.
Story by Zafar Bhutta
