Business
Govt's decides to hike gas prices for fertilizer industry
As per the IMF agreement, sources indicate that the gas prices for fertilizer plants will witness an escalation from Rs302 to Rs580 per MMBtu.
Islamabad: The Pakistani government is set to increase gas prices for fertilizer factories this month, aligning with conditions set by the International Monetary Fund (IMF).
Sources within the government have revealed that the price of natural gas supplied to fertilizer factories is slated to rise substantially, climbing from Rs302 to Rs580 per million British thermal units (MMBtu).
Additionally, feedstock for fertilizer manufacturers will be provided at Rs1580 per MMBtu, as part of the revised pricing structure.
Insider information suggests that the Ministry of Finance, the Ministry of Petroleum, and the Ministry of Industry and Production have commenced the process of implementing these gas price hikes for fertilizer manufacturers.
The move is anticipated to take place before the IMF conducts its forthcoming economic review.
The decision to increase gas prices for the fertilizer sector is indicative of the government's commitment to meeting the conditions outlined by the IMF, demonstrating its dedication to fiscal reforms in line with international financial guidelines.
The adjustment in gas prices for this industry is poised to have far-reaching implications on the sector and will be closely monitored by stakeholders and market observers.