Gas Shortage Forces Ban on CNG Conversions in Pakistan

| Pakistan, Islamabad | Source: APP (Associated Press of Pakistan)

In the wake of current natural gas shortages in Pakistan that have affected supply across all industry consumers, the Economic Coordination Committee, a cabinet level committee responsible for final decisions relating to economy, has imposed an open-ended ban on the import of CNG cylinder and conversion kit, reports news agency APP. Under the Chairmanship of Federal Minister for Finance and Economic Affairs, Dr Abdul Hafeez Shaikh, a ban has also been imposed on installation of new CNG kits in vehicles. Existing stocks are allowed to be utilized but not replaced.

An in-country spokesperson has confirmed with NGV Global that the new policy has put a ban on conversion of new vehicles either by local OEMs or the after market. The aim is to prevent the introduction of more natural gas vehicles (NGVs) into the market, thereby ceasing demand growth from that sector.

Only imported public transport vehicles produced with factory-fitted CNG are exempted from this moratarium; locally produced OEM vehicles are not exempt.

While there is no roadmap for lifting the moratorium, it is expected to be withdrawn once adequate gas supplies enter the system.

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