IMF demands gas tariff increase of 45-53% ahead of winters - sources

The International Monetary Fund (IMF), imposing yet another obligation on the federal government, has demanded to increase the gas tariff in the country ahead of winter, ARY News reported citing sources. 

Sources said that the government has asked IMF to give them some time to make necessary amends and raise the tariff. The increased tariff would help the government collect a total of Rs786 billion, which will be spent to curtail the circular debt of the country, they added.

An estimate says that the gas tariff could be increased from 45% to 53%. However, the government has ensured the money lender that small consumers would be facilitated and not overcharged.

The new gas tariff would be decided after amends to the Oil and Gas Regulatory Authority (OGRA) Act.

IMF has placed tougher structural benchmarks for Pakistan under the implementation plan for qualifying the next loan tranches, amounting to $3 billion.

According to a report on the completion of the seventh and eighth reviews of the extended fund facility (EFF), the global lender had slapped eight tougher targets on Pakistan in addition to giving fresh deadlines to meet the actions.

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For the revival of the IMF programme, the IMF had asked Pakistan to ensure electronically filed tax and asset details of bureaucrats, cabinet members and parliamentarians and make them available to the public.