ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved an increase in the general gas tariff of up to 124% for the six-month period of January to June in order to carry out a significant prior condition imposed by the International Monetary Fund (IMF) for reaching a staff-level agreement with Pakistan.
The Ministry of Energy's Petroleum Division presented tariff suggestions for all consumer categories in accordance with the Review of Expected Revenue Requirement (RERR) for the fiscal year 2022–2023, according to a statement from the Finance Ministry.
The announcement stated that "the ECC approved gas price revision proposal for residential, commercial, and power sectors for six months following comprehensive debate."
Reforms in the energy sector and managing the circular debt were still at the top of the list of issues discussed during the 10-day negotiations with the IMF delegation in Islamabad last Thursday.
The IMF delegation left Islamabad without concluding an agreement and demanded that Pakistan implement reforms.
The price has increased by 50 rupees, or 16.6%, to Rs350 per MMBTU for customers using up to 100 cubic metres of gas each month. The price per MMBTU for home customers who use 200 cubic metres has increased by 32% to Rs730.
Consumers of up to 300 cubic metres of gas will now pay Rs1,250 per MMBTU due to a 69% increase in the rate that has been approved. The cost per MMBTU for home consumers using up to 400 cubic metres of gas has increased by 99% to Rs2,200.
The price per MMBTU for families using more over 400 cubic metres of gas has increased by 124% to Rs3,277.
The price of gas for commercial consumers has increased from Rs. 1,283 per MMBTU to Rs. 1,650 per MMBTU, a 28.6% increase.
Following a 22.8% increase, the cost of gas for the power sector has gone up from Rs. 857 per MMBTU to Rs. 1,050 per MMBTU. The rate for the export sector has increased by 34%, to Rs 1,100 per MMBTU.
With a 31% increase, the CNG sector will be required to pay Rs 1,800 per MMBTU. The price of gas for the fertiliser industry has increased by 46% to Rs. 1,500 per MMBTU. With a 17.46% increase in gas prices, the cement industry will now pay Rs1,500 per MMBTU.
Rescheduling debt
In the meantime, the cabinet committee approved the Ministry of Economic Affairs' request to sign a debt rescheduling deal with Russia in order to suspend the $14.53 million COVID-related debt.
Once the ministry presented an overview of the G-20 Debt Service Suspension Program, the decision was approved (DSSI). For IDA-eligible nations, this debt reduction was announced in April 2020 as a way to lessen the socioeconomic effects of COVID-19.
Principal and interest payments were stopped as part of this strategy, extending debt relief. 37 debt rescheduling agreements have been negotiated thus far with 15 creditor nations.
Benazir Income Support Programme (BISP) received a Rs. 40 billion Technical Supplemental Award from the ECC to cover its financial needs for an increase in grants, both unconditional and conditional.
A description of improving the BSIP budget was provided by the Ministry of Poverty Alleviation and Social Safety. It gave the committee an overview of the current BISP programmes, including the "Benazir Kafaalat" unconditional cash transfer programme (UCT), which benefits about nine million families, and the "Benazir Taleemi Wazaif" and "Benazir Nashonuma" conditional cash transfer programmes (CCT).
Moreover, Rs25,000 in monetary aid was given to each affected household among the 2.7 million families affected by the floods as emergency relief.
Accelerated enrollments in Benazir Taleemi Wazaif have occurred in the Conditional Cash Transfer Program, and it is predicted that an extra million children will be enrolled by the end of June 2023.
Moreover, BISP expanded CCT Benazir Nashonuma to all of the country's districts.
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