IMF conditions: Govt ends gas subsidy for exporters

ISLAMABAD: The coalition government has withdrawn a subsidy on gas provided to the export sector, fulfilling another condition of the International Monetary Fund (IMF), ARY News reported.

According to details, the federal government abolished the gas subsidy of Rs80 billion to export sector following which the Sui Southern Gas Company (SSGC) notified the termination of supply of subsidised gas to the exporters from May 01.

The notification stated that the approved rate of Oil and Gas Regulatory Authority (OGRA) will be implemented to all export sectors from May 1 after which the export sectors will have to pay $4 extra per MMBTU on Regasified Liquefied Natural Gas (RLNG).

READ: GOVT MADE TOUGH DECISIONS TO MEET IMF CONDITIONS: RANA SANAULLAH

It is pertinent to mention here that the federal government ended the subsidies after the conditions tabled by the IMF.

Earlier in the day, it was reported that the delay in agreement with the International Monetary Fund (IMF) affected the schedule of new budget’s preparation.

“The strategy paper for Fiscal Year 2023-24 budget could not be prepared owing to political and economic uncertainty,” sources said. “It was planned to prepare the budget strategy paper and get approval from the cabinet in second week of April,” sources said.

“The situation has affected the schedule of fixing the limit of development and current expenditures,” sources said.

Pakistan’s economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.

On April 21, it was reported that the International Monetary Fund (IMF) asked Pakistan to ‘do more’ to unlock stalled loan programme despite the assurances from Saudi Arabia and the United Arab Emirates about external funds.

The meeting of Finance Secretary Hamid Yakoob in the US remained ‘unfruitful’ with the International Monetary Fund as the international lender has given the plan to arrange $1 billion from commercial banks to unlock the loan program.

The staff-level agreement was supposed to be signed on February 9 but had been delayed after then over IMF’s demands.