Govt Likely to Drop Gas Bomb in 48 Hours to Meet Another IMF Condition

The Government of Pakistan has until tomorrow to again drop a gas bomb on consumers as previously agreed with the International Monetary Fund (IMF). ECC is set to convene again today in a bid to reach a consensus on revising gas prices upwards tomorrow. If approved, this would mark the third increase in gas prices within a year. The proposed implementation of the Oil and Gas Regulatory Authority (OGRA) recommendations is expected to place an additional burden of approximately Rs. 100 billion on gas consumers, with the changes likely to take effect in 2024. A recent meeting of the Economic Coordination Committee (ECC) of the Federal Cabinet, chaired by caretaker Finance Minister Dr. Shamshad Akhtar, reviewed a summary presented by the Petroleum Division on the proposed increase in gas prices. However, a consensus could not be reached. If ECC approves the rate hike today, the proposed adjustments will be presented to the federal cabinet for final approval, after which OGRA will issue a notification. Previously, the caretaker government hiked gas rates by nearly 200 percent on November 1, 2023, and then by 112 percent on January 1, 2024.