Pakistan is preparing to significantly increase natural gas prices by more than 100% as winter approaches, according to the caretaker federal government. The decision comes as reports citing sources from the Ministry of Finance raise concerns about a projected surge of Rs46 billion in the circular debt of the gas sector for the current fiscal year. The International Monetary Fund (IMF) has also expressed worries about this situation.
The losses of gas companies have risen by Rs.46 billion in the period from July to September 2023, causing the total circular debt to reach Rs2,700 billion.
Pakistan Set to Double Natural Gas Prices Ahead of Winter
In response to this critical financial situation, the government has opted to raise the price of Sui gas significantly before the upcoming economic review. If the Sui gas price remains unchanged, it is estimated that there will be a shortfall of Rs185 billion. Furthermore, a revision of the price of RLNG for consumers is expected to result in a shortfall of Rs21 billion.
A summary proposing these gas price increases has been prepared and is scheduled to be presented at the next meeting of the Economic Coordination Committee (ECC).