IMF asks Pakistan to further hike gas tariff

ISLAMABAD: The International Monetary Fund (IMF) on Sunday asked Pakistan to hike the gas tariff, ARY News reported, citing sources. 

According to sources, the IMF demanded Pakistan to increase gas prices till mid-February, the hike in gas prices could go up to 41 percent.

Sources said that the IMF refused to provide subsidies on the power tariff except for the subsidies given in the budget.

Sources revealed that Rs 1000 billion cash will released for the petroleum sector, Rs 250 billion for power sector, Rs 600 billion for OGDCL whereas Rs 150 will be issued for the PPL.

Earlier, Pakistan shared an electricity tariff plan for the export sector with the International Monetary Fund.

As per details, the Pakistan government proposed lowering the power tariff to 9 cents from 14 cents to the export sector. Sources familiar with the development said the plan will be enforced after approval of the international lender.

It is to be noted that the International Monetary Fund (IMF) once rejected the decision to lower the power tariff for the export sector.

Read more: IMF cuts Pakistan’s 2024 growth estimate to 2pc

The export sector of Pakistan has been demanding the government to lower the power tariff to boost the exports of the country.

It is pertinent to mention here that the International Monetary Fund (IMF) revised down Pakistan’s growth estimate for fiscal year 2024 to two percent – a 0.5pc reduction from October outlook, stated its World Economic Outlook (WEO).