Gas prices likely to go up by over 45%

ISLAMABAD: Gas prices are likely to go up by more than 45 per cent as the government has presented a plan to the International Monetary Fund (IMF) to hike rates.

Sources said that the IMF has asked for a new plan as part of the ongoing efforts to reduce circular debt in gas and electricity sectors.

The sources said that the IMF wants the federal cabinet to approve the Circular Debt Management Plan 2024 by the end of July.

According to the sources, the IMF has made it clear that a complete assessment of the performance of government institutions cannot be made with the current Circular Debt Management Plan 2023.

The new plan will include measures to collect Rs392 billion in circular debt, the sources said.

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The IMF has also suggested that the volume of circular debt for electricity should also be capped at Rs2,374 billion, and a 10-year plan should be devised for the payment of the power holding company’s debt.

According to the sources, the IMF has asked the authorities to to determine an average price tariff for local and imported gas from the current fiscal year.

Additionally, the IMF has asked to devise a mechanism to curb gas losses .