ISLAMABAD: The caretaker government of Pakistan is all set to raise the gas prices by up to 100% for different categories of consumers, thus meeting one of the main conditions set by the International Monetary Fund (IMF).
A summary has been drafted for tabling before the Economic Coordination Committee (ECC), and the new prices would be applicable with effect from 1 October after the federal cabinet’s main body approves the decision, according to media reports.
Gas Sector’s Circular Debt
In case the rates are not increased, the gas sector’s circular debt will increase by 46 billion rupees by the end of the current financial year’s end.
This move will naturally further fuel inflation in Pakistan, which is already being sustained at a record-high level due to the constant increase in fuel and energy tariffs, resulting in higher food and other essential commodities prices.
