Caretaker government plans to hike gas prices ahead of winter

ISLAMABAD: In response to the surging circular debt in the gas sector, which is growing at a rate of PKR350 billion per year, the caretaker government has announced plans to increase gas rates across the board as winter approaches.

According to Dawn.com, the move aims to address the circular debt issue and revitalise an economy that has faced months of decline due to strict import regulations.

The reports said that the key ministers of the interim government highlighted the importance of long-term policy decisions during a news conference. They also pledged to uphold all international agreements while preventing their misuse against national interests.

As per the reports, one notable is connecting industries directly to power stations and charging them for it. This could affect power distribution companies (Discos) and the debt they owe.

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Furthermore, the government also plans to open up imports across the board to facilitate exports, job creation, and economic activities affected by months of import restrictions.

Dawn reported that the meeting was chaired by Caretaker Prime Minister Anwaarul Haq Kakar  and was attended by the army chief.

During the meeting, Finance Minister Dr Shamshad Akhtar stated that fresh inflows from multilateral organisations, expected to be around $6 billion during the year, would support the economy’s foreign exchange requirements.

Meanwhile, Information Minister Murtaza Solangi revealed that the Special Investment Facilitation Council (SIFC)  focused on key sectors of potential investments, including information technology, mining, and agriculture.

Additionally, the meeting addressed measures to contain government expenditures, privatisation decisions from the previous government, reforms in the Federal Board of Revenue (FBR), removal of roadblocks to foreign direct investment, and the improvement of performance in state-owned entities.

During the meeting, Commerce Minister Gohar Ejaz emphasised the need to bolster the viability of industries to manage inflation effectively. He suggested that by reviving the export industry, the surging dollar price could potentially decrease, mitigating inflation.