Pakistan Ordnance Factories to manufacture CNG cylinders: Steel Guru

Daily Times reported that to save USD 100 million foreign exchange annually on import of CNG cylinders in the country, Pakistan Ordnance Factories has entered into a JV with foreign company for manufacturing CNG cylinders with a project outlay of USD 17 million.

It is expected that joint venture comprising POF and a foreign company would kick start production of CNG cylinders in the country to meet the growing demand in cities as well as in rural areas.

According to an official document, Compressed Natural Gas cylinders are importable at 0% duty in the country. About 600,000 CNG cylinders involving USD 100 million are annually imported into Pakistan.

POF had sought exemption from customs duty on import of inputs used for manufacturing of CNG cylinders. Steel tube falling under PCT heading 7304:5900 importable at 15% duty was a major input for manufacturing of CNG cylinders.

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