IMF asks Pakistan to raise gas tariffs

Islamabad: The International Monetary Fund (IMF) on Monday urged Pakistan to raise gas tariffs, the sources privy to the development said on Monday.

 The demand entails an increase in gas prices by up to 41 percent by mid-February.

The IMF reportedly declined to offer subsidies on power tariffs beyond those allocated in the budget. It is understood that approximately Rs 1000 billion will be allocated for the petroleum sector, Rs 250 billion for the power sector, Rs 600 billion for OGDCL, and Rs 150 billion for PPL.

Previously, Pakistan presented a proposal to the IMF regarding electricity tariffs for the export sector. The proposal suggests reducing the power tariff from 14 cents to 9 cents for the export industry. Sources indicate that the plan awaits approval from the international lender before implementation.

It's noteworthy that the IMF had previously opposed the decision to reduce power tariffs for the export sector, despite demands from Pakistan's export industry to lower tariffs to enhance exports.