Gas price hike expected in January

ISLAMABAD: The government has announced another hike in gas prices scheduled to take effect in January. The decision comes amidst ongoing discussions with the International Monetary Fund (IMF) regarding a review of energy sector tariffs.

Caretaker Finance Minister Shamshad Akhtar briefed journalists on the IMF program, emphasising that no additional taxes will be imposed on real estate and retailers. However, she stressed the priority of meeting the Federal Board of Revenue’s (FBR) ambitious target of Rs 9,415 billion in tax collection.

She warned that if there is a shortfall in tax revenue, the government is prepared to implement additional measures. The government has also decided to postpone the issuance of the $1.5 billion international bond. The finance minister said that this is done on account of expectations that Pakistan’s credit rating will improve after reaching a deal with the IMF.

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“The completion of the $3 billion IMF program is our immediate priority. We are optimistic about the improvement in Pakistan’s economy, but there is still much work to be done,” she said.

The caretaker finance minister highlighted the importance of staying in the IMF program until exports increase. She indicated that discussions for a new program with the IMF might take place if time allows.

She also mentioned the likelihood of Pakistan receiving $2 billion from the World Bank, in the current financial year.

Speaking on Pakistan’s efforts to secure financing from alternative sources, she assured that we will not face an external financing gap. She shared plans including obtaining commercial financing from various countries and international organisations. The Asian Development Bank (ADB), Islamic Development Bank (IsDB), and Asian Infrastructure Investment Bank (AIIB) are expected to contribute $1 billion.

She confirmed that the IMF has not set any preconditions for the second tranche of $700 million.