IMF asks Pakistan to increase gas prices

ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to increase gas prices as part of its negotiations for the new loan program.

According to sources, the IMF has proposed a gas price hike for domestic, fertilizer, CNG, and cement sectors from August, with an increase of Rs 100-400 per month for protected and non-protected consumers.

The latest increase in gas tariffs will be applicable from August this year and affect not only domestic consumers but also fertilizer, cement and CNG sectors.

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However, the government wants to keep the gas tariffs for tandoors unchanged as these serve the working class and other low-income groups.

Earlier, the PML-N government in Punjab reduced the roti prices, forcing the tandoor owners to sell 100 gram roti for Rs15 and fixed the naan [120 grams] price at Rs20 – a move which has been later replicated in other parts of the country too.

The three plans submitted by Pakistan are part of the overall talks revolving around the gas sector circular debt as well as the intended reforms.