The Ministry of Finance summoned an emergency meeting of the Economic Coordination Committee (ECC) to revise the gas tariffs for Monday.
The decision to convene the ECC meeting comes after the IMF conveyed its reservations to the ministry, asserting that the interim government's failure to raise gas prices contravenes an earlier agreement.
Meanwhile, the consequences of the delayed gas price hike have not escaped notice, with Sui gas companies reporting significant losses amounting to a staggering Rs. 46 billion.
In response, the IMF is pushing for a substantial increase in gas rates to recoup these losses incurred during the period from July to September, as sources have disclosed.
Economic implications looming
The delay in raising gas prices has placed immense pressure on Sui gas companies, resulting in the substantial financial hemorrhage.
The accumulated losses of Rs. 46 billion represent a significant burden on these energy providers, leading to concerns about their long-term financial stability.
The IMF has expressed a willingness to revisit the existing financial agreement with the interim government, taking into account the prevailing economic circumstances.
This review may result in revised terms to ensure fiscal sustainability and prevent further adverse impacts on the energy sector.
Govt's balancing act
The government faces a challenging balancing act as it navigates the demands of international financial institutions like the IMF while also considering the potential backlash from the public and various stakeholders.
Any decision to increase gas rates will likely impact consumers and various industries, making this a complex and politically sensitive issue.
The ECC meeting on Monday will serve as a critical forum for discussions on the gas price hike and its implications for Pakistan's economy. The outcome of this meeting will play a pivotal role in determining the country's approach to this pressing issue.
