IMF demands to end subsidies for 'protected' consumers

Islamabad: The International Monetary Fund (IMF) has called for an end to subsidies for the poorest consumers called ‘protected’, while also issuing directives to gas consumers.

According to the IMF, protected gas consumers should be protected under the Benazir Income Support Program (BISP) Mechanism.

While the IMF has given new instructions to the authorities regarding the cross-subsidy of gas consumers.

According to media reports quoting IMF sources, protected gas consumers should be protected under the BISP mechanism, cross-subsidy should be phased out till protected gas consumers are protected.

Budget subsidy should be removed to transfer Re-gassified Liquefied Natural Gas (RLNG) to domestic consumers.

It is pertinent to note that a subsidy of 40 billion rupees was given to the household consumers for their transfer to RLNG, and a subsidy of 29 billion rupees was given to consumers for their transfer to RLNG.

While the government has increased gas rates from 40 to 65.29 percent from February 1.