Increased Gas Supply / Diversion of Gas for Enhanced Productivity and Exports:
The supply of natural gas to meet the rising demands of industries can have a profound impact on Pakistan’s economy. The general industry serves as a significant source of foreign exchange through the export of various products,. An enhanced gas supply to these industries will not only boost local industry productivity but also contribute significantly to the country’s economy. This will lead to increased business activities, improved financial performance, expanded employment opportunities, and higher per capita income.
Furthermore, the use of Gas in the industries & other sectors will reduce circular debt & Financial burden on the GOP.
Participation of Private Sector in Gas Sector Leads to Better Management of Resources:
The gas sector in Pakistan is currently controlled by government-owned entities, which has resulted in delays in decision-making processes regarding LNG imports to the country. However, recent market trends in the global gas industry, particularly in the global LNG trade, require timely decision-making to ensure and achieve national needs and interests.
UGDC has become the first sector company to obtain gas marketing, distribution, and sales licenses, marking a potentially transformative initiative for the country’s gas sector. The participation of the private sector is expected to enhance decision-making processes and capacity building within Pakistan’s gas system. This improved, efficient, and prompt management of the gas market is anticipated to yield better results in terms of profitability, operations, management, revenue generation, and the utilization of gas resources. UGDC, as a privately owned company, will ensure that the interests of all stakeholders are maintained, fostering a healthy competitive market.

The use of Gas by the private sector is poised to act as a driver for economic growth, offering several benefits:
• Minimization of the Government of Pakistan’s (GoP) financial liability and risk, with the transfer of Take or Pay risks from GOP to the private sector.
• Significant reduction in circular debt; Burden on GOP will significantly reduce, helping the Govt to reduce negative trends in budget & improve balance of payment postion of GOP.
• Gas load shedding in the winters will reduce significantly, will bring economic benefits not only for its Customers but for GOP as well.
• UGDC will generate its own Financing, is already making prompt payments to the Gas suppliers, hence improving confidence of Gas Exploration giants. This will further boost not only Gas exploration activities in Pakistan but enhance Pakistans International image as well.

TAXATION :
Introduction of Private Gas Sector, in the overall Energy mix, will definitely give boost to Revenue collection to the GOP, through collection of same in terms of GST, Withholding tax , Direct & In direct taxes, by the Private Sector, their stakeholders, customers & vendors, including employees.