Shafaqna Pakistan: The government has informed the International Monetary Fund (IMF) that the Rs140 billion cross-subsidy currently extended to gas consumers will be phased out by January 2027.
Following the reform, subsidies for gas and electricity will no longer depend on consumption levels and will instead be determined on the basis of household income. Data from the Benazir Income Support Programme (BISP) will be used to identify eligible beneficiaries.
Senior Petroleum Division officials said the existing system offers subsidised gas tariffs to both “protected” and certain “non-protected” consumers, with the financial burden being borne by industries, commercial consumers, CNG stations, the cement sector and high-consumption domestic users.
Under the proposed mechanism, all consumers will pay a uniform average gas tariff, while low-income households will receive direct government assistance.
Officials stated that the current average gas tariff stands at Rs 1,750 per MMBtu, while protected consumers are paying significantly lower rates.
Meanwhile, Federal Finance Minister Muhammad Aurangzeb held an important meeting with the IMF mission in Islamabad. According to the Ministry of Finance, discussions focused on Pakistan’s economic situation, the upcoming federal budget, and ongoing economic reforms.
The IMF delegation was led by Mission Chief Eva Petrová. The meeting was attended by the State Bank Governor, Finance Secretary, FBR Chairman, and other senior officials.
Both sides continue consultations on the broader economic reform agenda, with expectations that the upcoming budget will prioritize fiscal discipline and macroeconomic stability.
Source: Dunya News
