The caretaker government in Pakistan has announced that gas rates will be increased ahead of winter in an effort to control the growing circular debt in the gas sector. The government also intends to revitalize the economy, which has been declining due to strict import regulations. During a six-hour meeting, the special investment facilitation council (SIFC) made several long-term policy decisions, including connecting industries directly to power stations and opening up imports to facilitate exports and economic activities. The government ministers emphasized their commitment to upholding international agreements while preventing their misuse against national interests.
The caretaker Prime Minister, army chief, and four cabinet ministers attended the SIFC meeting, which will continue on Saturday to reach final decisions and announcements. The finance minister highlighted the expected inflow of $6 billion from multilateral agencies, which will help meet foreign exchange requirements. The SIFC also discussed potential investments in information technology, mining, and agriculture, as well as measures to reduce government expenditures, control circular debt, and improve the performance of state-owned entities.
Regarding the gas sector, the caretaker minister for power and petroleum stated that gas prices needed to be rationalized as the sector was facing a loss of Rs350 billion per year. The government plans to revise gas prices and offer an incremental tariff for industries during winter to avoid capacity payment losses. The ministers emphasized the need to revive the economy by removing import restrictions and focusing on increasing exports. Measures to control smuggling and honor international agreements were also discussed.
Overall, the caretaker government aims to address economic challenges, improve governance in various sectors, and strengthen the country’s financial position.
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