KARACHI, July 4: CNG kit makers have urged the government to lift the ban on CNG conversion as the move has halted the production of new vehicles by local car assemblers.

They said inconsistent government policies and ban on import of CNG kits and cylinders had severely hurt the investors’ confidence who invested over Rs 108 billion in the sector over the years.

Despite the uncertain future, Landirenzo’s chief executive Alberto Barbieri said that his company will stay in Pakistan despite the ban on conversion and on import of CNG kits and materials that was imposed in December 2011.

“We hope that the government will lift the ban on CNG conversion. We are committed to supporting Pakistan’s economy,” he said while responding to Dawn queries.

Around 2.7 million vehicles are already using CNG kits, while more than 3,311 CNG stations exist in the country. Total foreign investment in the CNG sector is Rs 14.5 billion.

Landirenzo has invested more than Rs two billion, Barbieri said, adding, “If the ban had not been imposed the figure would have increased considerably.”

When asked as to how the company is surviving since the ban on import of kits and materials in December 2011 coupled with non procurement of kits by Pak Suzuki and Indus Motors, he said: “We are surviving with the stocks imported last year and waiting for the government to overturn the ban.”

He said the transport sector consumes only 9.1 per cent of the total gas before the ban and the figure would be much lesser now owing to the gas stations closure of 1-3 days in different parts of country.

The new cars, he mentioned, would consume only 0.38 per cent gas which was not at all a burden even in the current gas availability scenario.

“The ban on CNG is total discrimination against the industry which consumes even less than the gas line losses of 10 per cent. Instead of taking concrete steps to cut the line losses, the government is taking measures against CNG kits only,” he said.

Barbieri said there has been no export of CNG kits since the ban was imposed. The government is also losing a plausible revenue share from CNG kit manufacturing companies that were exporting around 60,000 kits to Afghanistan, Italy, Thailand, China, Brazil, Iran, and Bangladesh, he informed.  “The government will lose six million dollars foreign exchange a year that it gets from the exports of CNG kits to the said countries,” he added. When asked about market stocks of kits and cylinders after the ban, he said: “I believed that kits being installed were smuggled and do not conform to safety standards and will become a safety issue for the consumers and the government.”

Meanwhile, sources in Landirenzo said that the total staff and workers strength in the company now stands at 60-65 persons as compared to 95-100 ahead of ban on CNG kits and cylinders.

Some people had left the company while others were offloaded sources said.

CEO of BRC (Gas Equipment) Arshad Altaf told Dawn that they have stopped future expansion plans in the country.

The company, he said, has invested Rs450 million in the last four years and it was planning to invest with same amount in future but the ban on import of CNG kits and cylinders has ruined future plans. “The sudden shift has left us with no option but to consider pulling out investment from the country,” he said.

At a press briefing held a local hotel, Barbieri and Arshad told newsmen that the ban on import of CNG kits and cylinders appears even stranger with the fact that the government itself is a big beneficiary.

In terms of revenue, the government gets Rs240 million per annum from the sector while the usage of CNG instead of petrol and diesel translates in the saving of Rs 222 billion on account of petroleum import bill, they maintained.They said the government’s gas load management plan was made to supply more gas to the industries.