The Economic Coordination Committee (ECC) of the federal cebinet has rejected a request for granting concessionary gas and re-gasified liquefied natural gas (RLNG) tariffs to the glass industry, declining relief sought by Ghani Glass, The Express Tribune reported.
The decision followed a summary submitted by the Ministry of Commerce, which maintained that extending discounted energy tariffs to the glass sector was not supported under the existing export-oriented framework.
The ministry informed the ECC that it had placed the matter before the forum in compliance with a judgement of the Lahore High Court dated April 10, 2025. The court had directed the government to formulate a uniform policy ensuring that tariff concessions are limited to export-oriented industries rather than sector-based classifications.
Following the LHC ruling, the ECC had earlier directed the commerce ministry to consult the Attorney General of Pakistan on pursuing the case before the Supreme Court of Pakistan. Consultations with the Attorney General’s Office and the Ministry of Law and Justice concluded that the relief granted by the LHC was substantive and unlikely to be fully overturned.
As a result, the ministry prepared a fresh summary explaining the rationale for not contesting the matter further and for rejecting the concession request. It noted that while five export-oriented sectors, including textiles, carpets, leather, sports goods and surgical instruments, were granted zero-rated sales tax status under an FBR notification and received concessionary gas and RLNG tariffs of $6.57 per mmBtu in 2018, those subsidies were withdrawn in 2023.
The commerce ministry said the glass sector’s contribution to exports was insignificant at the time the concessions were introduced and remains limited. It added that broader efforts are underway to enhance export competitiveness through tariff rationalisation, market access and trade facilitation rather than sector-specific energy subsidies.
After considering the summary and stakeholder consultations, the ECC approved the proposal to reject Ghani Glass’s request for concessionary gas and RLNG tariffs, including the claim for retrospective application from 2019.