ISLAMABAD (HRNW) \u2013 The government has assured the International Monetary Fund (IMF) that the Rs140 billion cross-subsidy currently provided to gas consumers will be phased out by January 2027.<\/p>\n
According to officials, after the elimination of the subsidy, relief on gas and electricity bills will be provided based on household income rather than consumption levels, using data from the Benazir Income Support Programme (BISP).<\/p>\n
Senior officials of the Petroleum Division said the current system provides gas at lower rates to protected and certain non-protected consumers, while the cost is borne by industries, commercial users, CNG stations, the cement sector, and high-consuming domestic users.<\/p>\n
Under the proposed reform, this structure will be abolished, and uniform average gas tariffs will be applied to all consumers. Only low-income households will receive targeted financial assistance.<\/p>\n
Officials noted that the current average gas tariff stands at Rs1,750 per MMBtu, while protected consumers are paying significantly lower rates under the existing system.<\/p>\n
Meanwhile, an IMF mission held a key meeting with Federal Finance Minister Muhammad Aurangzeb in Islamabad to discuss Pakistan\u2019s economic situation, the upcoming federal budget, and broader reform agenda. The mission was led by IMF Mission Chief Iva Petrova.<\/p>\n
According to the Ministry of Finance, the government reaffirmed its commitment to putting the economy on a path of stable and sustainable growth. The meeting was also attended by the Governor of the State Bank of Pakistan, the Secretary Finance, the Chairman FBR, and other senior officials.<\/p>\n
Officials said consultations between Pakistan and the IMF are ongoing, with the upcoming budget expected to focus on fiscal discipline and long-term economic stability.<\/p>\n
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