Govt Readies Plan to Increase Gas Rates on IMF Demand

The caretaker government has finalized its plan to increase gas rates, succumbing to pressure from the International Monetary Fund (IMF), well-informed sources told ProPakistani. The previous government had postponed the hike amid the economic turmoil that worsened during its tenure. According to sources, the IMF has called for a substantial 45 percent hike in gas rates, which will see the government collect a staggering Rs. 435 billion from the inflation-hit masses. The IMF has remained unwavering in its stance, refusing to grant any concessions on the gas rate hike. Nevertheless, the caretaker government has devised a plan to protect small gas consumers from the price surge. Officials have assured that gas prices will remain unchanged for the low-income sector of the population, sources added. The caretaker government plans to safeguard approximately 64 percent of gas consumers from the rate hike. A notification detailing the gas rate increase of up to 45 percent is expected to be issued soon, with the new rates slated to take effect from July 1, payable via adjustments in October through December. The increased rates will definitely impact large consumers, raising concerns among commercial users such as clay ovens (tandoors) and hotels, which are expected to experience higher operational costs. Additionally, the impending gas rate hike is anticipated to extend to industrial consumers and Compressed Natural Gas (CNG) providers, potentially affecting businesses across various sectors. This development may result in increased operational expenses for fertilizer factories and the steel industry.