The Economic Coordination Committee (ECC) of the federal cabinet is rumored to be on the verge of approving a substantial increase of up to 193 percent in the gas tariff, as demanded by the International Monetary Fund (IMF). This decision is set to have far-reaching consequences for both domestic and commercial consumers.
In the proposed plan, the local gas tariff is expected to soar by 173 percent for non-protected domestic consumers, 136.4 percent for commercial consumers, 86.4 percent for export industries, and 117 percent for non-export industries.
The caretaker Finance Minister, Dr. Shamshad Akhtar, will preside over the meeting of the ECC, which aims to review the gas tariff. The agenda for the ECC meeting consists of three points, with the presentation of a summary of gas prices being of utmost importance.
One of the key highlights of the proposed plan is the significant increase in fixed monthly charges for protected consumers, which is forecasted to rise from Rs10 to Rs400. Furthermore, the import industry may witness a jump in gas tariff, from Rs950 to Rs2050. Additionally, the gas price for CNG is expected to experience an increase of Rs2595 per MMBTU.
If approved, the new gas rates will come into effect on October 1st.
Earlier reports indicated that the International Monetary Fund (IMF) had advised Pakistan to ‘immediately raise’ the gas tariff, underscoring the urgency of the situation.
While the decision rests with the ECC, it is crucial for the government to carefully evaluate the potential impact of such a massive tariff hike on consumers and various sectors. Striking a balance between meeting the demands of international organizations and ensuring affordability for the general public is imperative for sustainable economic growth. The repercussions of this decision will undoubtedly shape the trajectory of the country’s energy sector and warrant considerable attention and analysis from experts and stakeholders alike.
The Economic Coordination Committee (ECC) in Pakistan is expected to approve a significant increase of up to 193% in gas tariffs, as demanded by the International Monetary Fund (IMF). The proposed increase includes a 173% hike for non-protected domestic consumers and higher tariffs for commercial, export, and non-export industries. The new rates may be implemented starting from October 1. The IMF has urged Pakistan to raise gas tariffs promptly.
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