Govt fails to fund gas projects despite Rs295b cess collection
Statesman Report
ISLAMABAD: The government has failed to funnel funds into the Iran-Pakistan pipeline project in spite of collecting Rs295 billion the under Gas Infrastructure Development Cess Act 2015, the Ministry of Petroleum told the Supreme Court on Thursday.
In a report submitted to the top court, the ministry said as per the act the collected cess should have been utilised by the federal government for infrastructure development of gas projects, such as the Iran-Pakistan pipeline project and Turkmenistan-Afghanistan-Pakistan India (TAPI) pipeline project, LNG or other projects.
TAPI Gas Purchase Agreement (GSPA) was concluded in 2012 under which Turkmenistan will supply 1341 mmscfd gas for 30 years.