Pakistan

Pakistan Considers 100% Natural Gas Price Hike Ahead of Winter

According to recent developments, the caretaker federal government in Pakistan is planning to raise natural gas prices in anticipation of the winter season. Reports, citing sources from the Ministry of Finance, have indicated concerns about a potential increase of Rs46 billion in the circular debt in the gas sector during the current fiscal year. The International Monetary Fund (IMF) has also expressed apprehensions regarding this situation.

The losses incurred by gas companies have surged by Rs46 billion from July to September 2023, leading to a total circular debt of Rs2,700 billion.

Given the current scenario, the government is considering a substantial increase in the price of Sui gas, exceeding 100%, before the upcoming economic review. Failure to do so could result in a shortfall of Rs185 billion, as reported. Furthermore, if the price of Regasified Liquefied Natural Gas (RLNG) is revised upward for consumers, there may be a Rs21 billion deficit.

A proposal for the increase in gas prices has been drafted and is scheduled to be presented at the next meeting of the Economic Coordination Committee (ECC).

Hamna

Hamna is a seasoned journalist and a valued contributor to a leading Pakistani news website. With a Master's degree in Journalism from the University of Karachi, she specializes in political analysis and international affairs.

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