Federal cabinet defers hike in gas prices

ISLAMABAD: The federal cabinet has deferred the hike in gas prices and instructed the authorities concerned to further mull over the decision, citing sources, ARY News reported on Monday.

The federal cabinet has stopped the implementation of the prescribed hike in gas prices and deferred the decision of the Economic Coordination Committee (ECC).

Caretaker Prime Minister Anwaarul Haq Kakar chaired the federal cabinet session today and took key decisions.

Sources told ARY News that several decisions taken by the ECC were not taken into consideration in today’s federal cabinet session.

However, the cabinet members approved to exclude Pakistan Steel Mills (PSM) from the privatisation list.

During the session, the Hajj and Umrah Regulation Bill 2023 was approved. A briefing was given to the cabinet members by the Caretaker Federal Minister for Religious Affairs Aneeq Ahmed.

It was told that the Hajj quota for Pakistanis is 179,210 as per approved by Saudi Arabia. The private and government Hajj quota will be fixed at 50% each.

The ministry will start accepting Hajj applications from mid-November.

In another decision, the cabinet approved the establishment of the anti-human smuggling station. The special police station will be established by the Federal Investigation Agency (FIA).

A briefing was also given on the repatriation of illegally residing immigrants from across the country. It was told that the orders for repatriation of illegal immigrants were issued to all provinces under the Foreign Act 1947.

Sources said that all concerned institutions including police forces have been directed to arrest the illegal immigrants. It was learnt that all illegal immigrants who are facing trials in minor crimes and convicted will be deported.

However, those foreigners will not be deported who were found involved in serious crimes, sources added.

The caretaker government granted special powers to the district administration, police forces, prosecution and jail administrations.

Additionally, special detention centres have been established in all four provinces to keep the arrested immigrants and deportation.

ECC’s decision about gas prices

On October 23, the Economic Coordination Committee (ECC) of the Cabinet had approved various summaries including revision of natural gas pricing.

A summary submitted by the Ministry of Energy (Petroleum Division) regarding the revision of the natural gas sale pricing for the FY 2023-24, was also approved as per the tariff schedule submitted by the Ministry, prospectively w.e.f. 1st November 2023, instead of 1st October 2023.

It was learnt that the federal cabinet is likely to approve a massive hike of up to 193 per cent in the gas tariff.

The government is likely to increase the local gas tariff up to 173% for non-protected domestic consumers, 136.4% for commercial, 86.4% for export and 117% for the non-export industry.

Sources said fixed monthly charges for the protected consumers will be increased from Rs10 to Rs400, while the tariff for the import industry is likely to be jacked up to Rs2050 from Rs950. The gas price for CNG is proposed to increase by Rs2595 rupees per MMBTU۔

Earlier, sources within the finance ministry told ARY News that the International Monetary Fund (IMF) asked Pakistan to ‘immediately raise’ the gas tariff.