Islamabad [Pakistan], July 24 : Pakistan government is planning to increase gas price by more than 45 per cent in line with the demand of the International Monetary Fund (IMF), Pakistan-based ARY News reported citing sources.
According to sources, Pakistan federal government has shared a plan with the International Monetary Fund regarding the increase in the gas price. The sources further said that the global lender has asked Pakistan not to delay an increase in the gas tariff to reduce circular debt, ARY News reported.
The IMF wants the Pakistan federal cabinet to give approval to the Circular Debt Management Plan 2024 by the end of July as the performance of the institutions cannot be reviewed with the Circular Debt Management Plan 2023, ARY News reported.
The sources have said that the new plan will ensure measures to pay a circular debt of Pakistani Rupees (PKR) 392 billion, the report said. According to sources, the International Monetary Fund wants Pakistan to freeze the power sector circular debt at PKR 2374 billion and make a 10-year plan to pay the debt of the sector.
Last week, Pakistan's federal cabinet authorised the power regulator’s request to increase the national average tariff, which will see some residential consumers paying up to PKR 7.50 more per unit, Pakistan-based Dawn reported.
The cabinet had given approval to the rise through a summary and the decision was conveyed to the National Electric Power Regulatory Authority (Nepra) on Saturday, as per the Dawn report. Nepra had set a public hearing to fulfil the formalities before implementing the hike. The rise in power tariff will take effect from July 1 and will be applicable to all power distribution companies (Discos) and the Karachi-based private utility K-Electric, according to Dawn report.
Earlier this month, the power regulator increased the national average tariff by around PKR 5 per unit to ensure PKR 3.28 trillion in funds to power distribution companies during the current fiscal year.
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