Pakistan bids for uniform tariffs in non-export sector

A significant proposal is on the horizon that could reshape the gas pricing structure for non-export industries in Pakistan.

This proposal advocates for the implementation of a uniform system of gas tariffs, which, if approved, could result in increased gas costs for this sector.

The proposed tariff changes indicate that gas prices for non-export industries may soar to Rs. 2600 per MMBtu, a substantial increase compared to the potential gas price of Rs. 1400 per mmbtu for Sui-Southern industries.

The envisaged uniform tariff system aims to create a more equitable landscape for gas pricing, which could result in Sui Northern industries benefiting from a lower gas cost of Rs. 3340 per MMBtu.

Currently, non-export industries receive gas at a rate of Rs. 3650 per MMBtu.

This proposal aligns with recommendations from the International Monetary Fund (IMF), which has endorsed a uniform tariff system for non-export industries across the country.

To formalize these changes, a summary of a uniform tariff system is anticipated to be presented at the upcoming Economic Coordination Committee (ECC) meeting.