Monday, April 15, 2024
Monday, April 15, 2024
HomeNewsPakistan Must Cancel Rs. 129 Billion Gas Subsidy to Get New and...

Pakistan Must Cancel Rs. 129 Billion Gas Subsidy to Get New and Much Bigger IMF Program

The Pakistani government must fulfill specific requirements, including the cancellation of Rs. 129 billion in gas subsidies, to qualify for an increased $8 billion IMF Extended Fund Facility (EFF) program.

These conditions involve withdrawing cross-subsidies, submitting circular debt management plans, and transitioning captive power plants to the national grid.

The IMF also calls for the return of the weighted average cost of gas (WACOG), ending gas subsidies in the fertilizer sector, and implementing biannual price reviews to curb circular debt spikes.

 Additionally, an audit report of SSGC is required to address its financial losses. These measures are essential for securing a new bailout program.

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