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Gas tariff set to increase by up to 100%

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1 year ago

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  • Summary for new gas tariffs finalised, sent to ECC for approval.
  • Gas sector’s circular debt reached Rs2,700 billion.
  • Up to 1 mmBtu usage price to go up from Rs2,000 to Rs3,500.

KARACHI: The gas tariffs are set to go up by up to 100% for different categories of consumers in line with the conditions of the International Monetary Fund (IMF) to control the mounting circular debt, The News reported on Tuesday.

According to the report, the summary for new gas tariffs has been finalised and submitted to the Economic Coordination Committee (ECC) for approval.

Sources said that once the summary sailed through the ECC, it would be submitted to the federal cabinet. “The new rates would be applicable with effect from Oct 1 after the federal cabinet’s approval,” they said.

The gas sector’s circular debt has reached Rs2,700 billion. 

According to the proposal, up to 1 mmBtu usage price to go up from Rs2,000 to Rs3,500. The sources noted that circular debt would increase by Rs46 billion if gas prices were not hiked by the end of the current financial year and the shortfall of the companies will be in the vicinity of Rs185 billion.

The proposal encompasses a substantial adjustment in fixed monthly charges for protected gas consumers.

Under the plan, it is expected that domestic consumers will be burdened with a hefty 100% increase in gas charges, while other consumers might face a proposed hike of 198.33%.

These tariff adjustments are part of the caretaker government’s strategy to address the persistent circular debt issue and fulfill commitments to the Fund, the sources said.

They said the decision would naturally fuel inflation in Pakistan, which is already at a record-high level thanks to the constant increase in fuel and energy tariffs, resulting in higher food prices, however, the gas price hike is a key condition of the IMF programme. 

As the new tranche is to be released in November, the gas sector’s circular debt reduction is a must under the IMF condition, which can be done only through a hike in gas prices.

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Issues Affecting Pakistan’s Textile Mills Industry: The Government Is Determined To Address Textile Industry Concerns: FM

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3 days ago

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Muhammad Aurangzeb, minister of finance, has stated that the government is firmly committed to helping the textile industry in every way possible.
He made this pledge today in Islamabad during a meeting with the All Pakistan Textile Mills Association’s leadership.
In order to guarantee the long-term sustainability and future expansion of Pakistan’s industrial sector, the Minister also reaffirmed the government’s commitment to addressing important tax, energy, and funding challenges.
He welcomed the APTMA office-bearers and gave the delegation his word that the government is committed to resolving the issues facing the textile industry since it understands how important it is to Pakistan’s economy.
Muhammad Aurangzeb underlined that resolving the fundamental issues facing the sector is essential to establishing an atmosphere that is favorable for industrial expansion, promoting economic stability, and bolstering the country’s overall growth trajectory.

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Business

As the MPC meeting draws closer, stocks rise.

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3 days ago

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On the final working day of trading, the Pakistan Stock Exchange (PSX) maintained its optimistic trend.

After rising more than 900 points, the benchmark KSE-100 index stabilized around 114,684 points.

The forthcoming Monetary Policy Committee (MPC) meeting on March 10 is allegedly connected to the bullish trend.

Recall that the KSE-100 index gained over 1,400 points on Thursday before closing at 113,713 points.

The greenback, on the other hand, dropped Rs0.07, from Rs279.82 to Rs279.75.

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Business

FBR to Enhance Revenues: Enacts Significant Reforms, Attains Record Revenue Collection

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4 days ago

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The Federal Board of Revenue has effectively executed significant reforms in the past year, enhancing tax administration, compliance, and digital transformation under the leadership of Prime Minister Shehbaz Sharif.
The FBR implemented AI-driven risk identification algorithms to improve tax audits and introduced a customer relationship management dashboard for real-time compliance monitoring.
Moreover, AI-driven Customs Intelligence and digital invoicing systems have transformed tax collection and customs operations.
The implementation of faceless customs assessment has markedly diminished clearance waits, optimizing international trade.
The unified sales tax return has streamlined the tax filing procedure, while the continuous advancement of a tier-3 data center seeks to enhance data security and AI-driven surveillance.
To enhance transparency, the FBR digitized its litigation management system for faster dispute resolution.

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