KARACHI: The federal government’s plan to raise gas prices for industrial units has been halted by the Sindh Provincial High Court. Additionally, it has mandated that written defenses of the hike be submitted by the federation, the Oil and Gas Regulatory Authority (Ogra), and the Sui Southern Gas Company (SSGC).
Before a single-member bench of Justice Mahmood A Khan on Thursday, the hearing of petitions filed by more than 400 enterprises challenging the caretaker government’s notifications to raise gas pricing for industry was continuing.
The legal representative for the petitioners contended that the province that generates a resource possesses the first entitlement to utilize it. According to him, Sindh is the nation’s top gas producer.
He pointed out that raising petrol prices was not within the authority of the caretaker government. Daily operations are meant to be managed by a caretaker administration. It is unable to decide on important policy issues.
According to the federal government’s attorney, the caretaker government raised gas prices to generate more income in accordance with an International Monetary Fund (IMF) requirement.
Justice Khan asked the lawyer about the terms of the agreement between the IMF and the government. He pointed out that the copy that was produced in court was a news statement that the Fund had sent out, not an agreement.
He said, “The press release stated that the IMF’s requirement was limited to an increase in revenue, and the caretaker government’s own recommendation to raise taxes and gas prices.”
The petitioners were involved in the decision-making process about the price increase, according to Ogra’s attorney, and half of them were government employees who were aware of the circumstances.
He argued that “the court does not have the authority to intervene in policy matters.”
These are ancient arguments, the judge said, adding that the court will follow the law.
The federal government’s notifications of November 8, 2023, and December 14, 2023, regarding hikes in gas prices for industries, were later suspended by the SHC.
The federal government’s appeal to be allowed to collect the money was denied by the court, which also ordered firms to deposit the additional cash with the court’s nazir.
It also mandated the submission of written arguments by March 14 from the federal government, OGRA, SSGC, and other parties. A nazir is a member of the court who oversees proceedings, serves as treasurer, and carries out related tasks.
