Islamabad (HRNW)- The federal government has submitted a comprehensive plan to the International Monetary Fund (IMF) aimed at reducing Pakistan’s growing gas sector circular debt, including a proposal to impose a new gas levy.
According to sources, the IMF has raised important questions regarding the government’s gas circular debt management strategy and has sought further clarification on several aspects of the plan.
Sources stated that the IMF considers the gas circular debt a major burden on Pakistan’s energy sector and has emphasized the need for effective and sustainable measures to address the crisis.
As part of the proposed strategy, the government is considering imposing a Rs5 levy on gas consumption. In addition, a proposal has been presented to reduce circular debt through dividends generated by government-owned companies.
Officials said that multiple financial sources are being explored to ease liabilities in the gas sector. The government has also included a decision to sell 35 LNG cargoes annually in the international market, which is expected to generate nearly Rs160 billion each year to help reduce circular debt pressure.
Furthermore, authorities have set a target of collecting an additional Rs61 billion through improved recovery efforts by Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC).
According to reports, Pakistan’s gas sector circular debt has surged to approximately Rs3,400 billion, while companies including OGDCL and PPL are also facing outstanding dues of around Rs150 billion, increasing financial strain on the country’s energy sector.
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