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Pakistan raises gas tariffs to meet its IMF bailout commitments

Prime Minister Imran Khan's adminsitration reached an accord for a bailout package with the IMF in May, in which it committed to curtail energy-sector losses

Kamran Haider | Bloomberg  |  Islamabad 

Pakistan's Prime Minister Imran Khan
Pakistan's Prime Minister Imran Khan

boosted gas tariffs for the first time in nine months as it tries to meet commitments for a $6 billion Monetary Fund bailout package.

The increase in the charges range from 173 Pakistani rupees per metric million British thermal unit (mmbtu) to 463 Pakistani rupees/mmbtu for domestic consumers, according to the Oil and Gas Regulatory Authority’s notification.

Prime Minister Imran Khan’s adminsitration reached an accord for a bailout package with the in May, in which it committed to curtail energy-sector losses. The loan package is subject to the approval of the fund’s executive board.

The government last raised the utility tariff in October as the country faced a balance of payment crisis due to current account and fiscal deficits, and depleted foreign-exchange reserves.

The tariff for the textile industry increased by 180 Pakistani rupees/mmbtu, while that for the cement sector rose by 302 Pakistani rupees. Other industries face a 241 Pakistani rupee/mmbtu increase.

First Published: Mon, July 01 2019. 02:16 IST
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