for passing on impact of higher LNG prices to consumers
Business
June 4, 2021
KARACHI: The government has to start passing on the impact of higher liquified natural gas (LNG) prices to the consumers via an appropriate price pooling mechanism otherwise it risks the formation of a circular debt situation akin to the one prevailing in the electricity sector, the central bank said on Thursday.
“With LNG imports set to rise substantially over the coming years, it is crucial to devise ways to address the mindset of cheap availability of natural gas in the country,” the State Bank of Pakistan (SBP) said in report. “Due to the prevalence of extensive cross subsidies, various segments of the economy, in particular fertilisers and household sectors, have taken the availability of subsidised natural gas for granted.”
Now it has justified the transfer suggesting that it was made possible due to lower risk capital provisioning by the central bank this year as it balance sheet size shrunk by a fourth.Addr
Photo Credit: IANS
IANSLive
New Delhi, June 4 (IANS) Last month the Reserve Bank of India (RBI) had surprised many by announcing huge surplus transfer of Rs 99,122 crore to Centre for nine months ended March 31, 2021.
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