Gas prices likely to rise ahead of new IMF bailout programme

The Pakistani government has started preparing a mechanism to increase prices for fertilisers, CNG, cement, and gas in order to unlock a new bailout programme from the International Monetary Fund (IMF).

According to sources, Islamabad has presented three plans to the global lender to reduce circular debt in the gas sector.

Pakistani officials proposed IMF a hike in gas prices supplied to fertiliser plants to control circular debt in the sector. 

Additionally, both side also discussed a dividend scheme to reduce circular debt in the gas sector. 

However, the government expressed its readiness to share data related to collection, reforms, and tariffs with the IMF in a timely manner. 

Sources said negotiations between Pakistan and the IMF on gas tariffs, circular debt, and reforms are likely to take place soon, but an increase in prices under the proposed plan is expected to be imposed in August. 

The plan presented to the IMF includes an increase of Rs100 to Rs400 for protected and non-protected consumers, respectively.