Published On: Wed, Dec 18th, 2013

PM Declines to Approve Gas Tariff Hike Planned By IMF

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Corporate News (Pakistan news) IMF

Corporate News (Pakistan news)

The Cabinet members of the current government has seemed to have mixed views over a proposal proposed by the Petroleum Minister Shahid Khaqan Abbasi  and the Finance Minister, Ishaq Dar regarding the increase in gas tariff for all consumers except domestic consumers.

According to reliable sources the Prime Minister strongly opposed this proposal with the reason that the government had already been facing a lot of criticism from all sides on the issue of the general price hike particularly of electricity and it would not be advisable to increase gas prices at a time when there was already a shortage of gas for people across the country.

Different sectors which relied mainly on gas for their production warned the prime minister of the adverse affects of an increase in gas tariff on the overall production of the country. They also illuminated the fact that the textile sector would be badly affected by this increase in tariff as Pakistan was recently granted a GSP plus status by the EU and instead of a decrease in the final cost of the textile products the prices would be increased due to an increase in the gas prices.

The prime minister was further informed that the CNG sector was busy in planning a big protest alongwith opposition parties and thus this could also affect PML-N’s position in the local body elections in Punjab.

The economic team led by the finance minister, Ishaq Dar had given an undertaking to IMF as part of the $6.64 billion Extended Fund Facility to generate about Rs100 billion from gas prices through imposition of a levy. Hence the efforts of the economic team would be to pursue the prime minister to meet its commitments made to the IMF in the upcoming weeks.

 

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