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IMF Asks Pakistan to Implement Gas Tariff Hike

IMF Asks Pakistan to Implement Gas Tariff Hike as soon as possible to comply with the loan terms.

Pakistan Gas Hike: Brace for Inflation as IMF Demands More!

Hold onto your wallets, Pakistan! The International Monetary Fund (IMF) is urging another gas tariff increase, sparking inflation concerns despite recent drops in food and energy prices.

Read More: IMF Greenlights $700 Million for Pakistan

Here’s what you need to know:

1. More Gas Hikes Coming: Forget a break, another gas price jump is looming before February 2024. The IMF wants it aligned with December’s determination, further squeezing household budgets.

2. Inflation Woes Continue: Though food and energy costs eased, the November gas spike will push headline inflation to 24% in 2024. Prepare for pricier essentials from groceries to gas.

3. Glimmers of Hope: There’s light at the end of the tunnel. Lower core inflation and recent commodity trends predict a gradual decline in inflation post-2024.

4. IMF Pushes for Reform: The IMF wants Pakistan to stick to gas tariff adjustments every six months for a healthy gas sector. This means regular price hikes, but could stabilize the sector in the long run.

IMF Backs Pakistan’s Gas Reforms: Phasing Out Captives, Protecting Vulnerable, Tackling Circular Debt

Pakistan’s gas sector is undergoing a major overhaul with IMF backing! Here’s what’s changing:

1. Bye-Bye Captives: Industries generating their own power using gas (captive power) will have to switch to the grid, creating a fairer playing field for all consumers.

2. Circular Debt Tamed: A plan is in place to tackle the spiraling circular debt (Rs2.5 trillion!), freeing up funds for vital gas infrastructure improvements and reducing gas theft (UFG losses).

3. Protecting the Vulnerable: Subsidized gas tariffs for low-income families will stay until a robust BISP scheme takes over, ensuring affordability.

4. More Frequent Price Tweaks: Gas prices will adjust twice a year to reflect costs, with protections for vulnerable households and a focus on reducing cross-subsidies.

5. Fertilizer and Industry Rates Revamped: Fertilizer prices will gradually move towards cost recovery, and export and non-export industries will pay the same rates by March 2024.

Note: The information above might not be accepted 100%. Please verify from your own sources. We will not be responsible for any kind of loss due to our content.

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