Islamabad ; Oct 22 : And after the killing increase in the power rates in the recent months, the caretaker government is going to approve revision in the gas prices up to 100 % for all categories except power sector.
The Economic Coordination (ECC) of the federal cabinet ,which is meeting with caretaker prime minister , Anwaarul Haq Kakar in the chair , is going to take the proposal of the Energy Division for the increase in the gas rates today (Monday).
The Energy Division has already submitted the summary with the Cabinet Division for up to 100;% increase in the gas rates. In the case , ECC approves the proposed increase in the gas rates , the new rates will come into effect from July 1,2023.
According to the media reports , the proposed formula for the increase in the gas rates has already been shared with the International Monetary Fund (IMF) . The increase in the gas rates from July 1, 2023 is one of the IMF conditionalities accepted by Shahbaz government for getting $ 3 billion loan in June this year.
As per IMF agreement, the government of Shahbaz Sharif was required to honour commitment made with IMF and revise the gas prices from July 1 , 2023. However, the Shahbaz government preferred to leave this difficult decision for the caretaker and finally it bowed out the power corridors on September 9 ,2023.
IMF has already showed it displeasure over non- committal of a key condition of the agreement relating to the increase in gas rates and warned to to the authorities in Islamabad that Pakistan’s failure in meeting key condition of upward revision in gas rates could lead to withholding of its next installment scheduled to be released in December this year.
In the given situation when Pakistan need inflows of funds from international financial institutions like IMF it cannot afford to delay the increase in the gas rates. Pakistan ‘s almost all key sectors like exports related industries , fertilizer, commercial sector , industria sector and even domestic sector are living on subsidized gas rates.
iMF and other international financial institutions are demanding of Pakistan to do away with its culture of subsidizing gas and power rates . Since Pakistan is promoting the culture of subsidies its resisting this IMF demand . The culture of subsidy aimed at giving undue benefit to the rich of this country has done irreparable loss to Pakistan ‘s economy. It is important to note that the poor of Pakistan are paying for subsidies of gas and power.