Islamabad, Pakistan – July 1 (ANI): The Pakistani government\’s decision to increase gas rates for industrial captive power units by 9%, effective July 1, is set to impact 349 industrial units operating captive power plants with 523 gas connections, contributing significantly to national exports.
The move, ratified by the Economic Coordination Committee (ECC) chaired by Finance Minister Muhammad Aurangzeb, is part of measures to fulfill obligations under a three-year IMF loan program. The decision blocks a proposed 15% reduction in gas rates due to lower international oil prices, which would have amounted to PKR 133 billion in savings.
The gas rate hike will raise the tariff to PKR 3,000 per million British thermal units (mmBtu) from the previous PKR 2,750, generating increased revenues for the government. However, stakeholders have expressed concerns about the impact on industrial growth and consumer affordability amidst global economic uncertainties and domestic fiscal reforms.
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