Prior to the final round of negotiations with the International Monetary Fund, Pakistan agreed a significant rise in natural gas prices (IMF).
The cabinet’s Economic Coordination Committee (ECC), which Ishaq Dar, the minister of finance, presided over, approved the rise in gas prices on Monday.
The government reportedly increased tariffs for commercial customers by 29% to Rs. 1650/mmBtu. After a 34% increase, the new tariffs for exporters would be Rs 1100/MMBtu. Gas costs for all other industries, however, have jumped by 13.9% to Rs. 1200/mmBtu.
The price of gas for CNG and cement businesses has increased by 32% and 15%, respectively, to Rs1805/MMBtu and Rs1500/mmbtu.
Analysts thought the administration had raised gas prices dramatically to meet IMF requirements for the next $1.2 billion tranche.
Federal Secretaries, senior officers, Shahid Khaqan Abbasi, MNA/Ex-PM, SAPM on Finance Tariq Bajwa, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Federal Secretaries, and others attended the ECC meeting.
Syed Murtaza Mahmud, the Federal Minister for Industries and Production, Musadik Masood Malik, the Minister of State for Petroleum, and the Governor of the State Bank of Pakistan (SBP) all joined the meeting electronically through a video link.
In accordance with RERR FY 2022–2023, the Ministry of Energy’s Petroleum Division presented tariff suggestions for all customer categories and laid out a summary of the natural gas sale pricing for the fiscal years 2022–2023 on the table.
The ECC adopted the proposal for the revision of gas prices for the household, commercial, and power sectors for a period of six months, from January to June 2023, following a thorough discussion.
The Ministry of Economic Affairs summarised the G-20 Debt Service Suspension Initiative (DSSI). To lessen the socioeconomic effects of Covid-19, this debt reduction was announced for IDA-eligible countries in April 2020.
Through the postponement of principal and interest payments, debt relief was provided under this scheme. 37 debt rescheduling contracts have already been inked with 15 creditor nations.
Pakistan Gasoline prices