Pakistan Raises Gas Tariffs to Meet Its IMF Bailout Commitments

(Bloomberg) -- Pakistan boosted gas tariffs for the first time in nine months as it tries to meet commitments for a $6 billion International Monetary Fund bailout package.

The increase in the charges range from 173 rupees per metric million British thermal unit to 463 rupees/mmbtu for domestic consumers, according to the Pakistan Oil and Gas Regulatory Authority’s notification.

Prime Minister Imran Khan’s adminsitration reached an accord for a bailout package with the IMF in May, in which it committed to curtail energy-sector losses. The loan package is subject to the approval of the fund’s executive board.

The government last raised the utility tariff in October as the country faced a balance of payment crisis due to current account and fiscal deficits, and depleted foreign-exchange reserves.

The tariff for the textile industry increased by 180 rupees/mmbtu, while that for the cement sector rose by 302 rupees. Other industries face a 241 rupee/mmbtu increase.

©2019 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.