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Deduction from payment, foreign LNG company sues Pakistan in international court

Evelyn by Evelyn
January 20, 2021
in Business, News, World
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Deduction from payment, foreign LNG company sues Pakistan in international court
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Deduction from payment, foreign LNG company sues Pakistan in international court
ISLAMABAD: The involvement of state-owned companies in the LNG business has posed a financial threat to Pakistan as GUNVOR, a foreign LNG supplier, has filed a lawsuit against Pakistan State Oil (PSO) in an international court. Is.

The PSO objected that the company had been receiving charges for more than four and a half years, so deductions were deducted from the new payments, on which the foreign company approached the International Court of Justice. The government had involved the private sector in the installation of LNG terminals in Pakistan, but the supply of LNG was given to government companies like PSO and PLL instead of the private sector, where the private sector was their customer. ۔

This not only posed economic risks to state-owned companies but also disrupted the entire energy system. According to the original plan, the PML-N government had started supplying LNG to the power sector, but not electricity. The department is reluctant to take LNG supply.
Even though the present government has exempted LNG power plants from guaranteeing, the present government has allowed the private sector to use, sell and import LNG, but state companies have failed in this business. Want to maintain their monopoly.

Moreover, after the failure to use LNG in the power sector, the PTI government has shifted LNG to the domestic sector, which has led to an increase in revolving credit, legally importing gas from domestic consumers. As a result, the payment of more than Rs 78 billion is stalled.

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