The government has made a commitment to the International Monetary Fund (IMF) to keep implementing higher electricity and gas tariffs in January and February 2015.
“By January 2015, authorities are committed to notifying new gas prices, which were postponed from August due to political protests,” said IMF in a report on disbursement of $1 billion tranche of the $6.8 billion bailout package.
The report also said that Pakistan “authorities are committed to make further adjustments in January and February to recover the remaining gap to reduce electricity subsidies to 0.7 per cent of the GDP for fiscal year 2014-15, and limit the accumulation of circular debt”.
It said the government had earlier promised to increase power tariff by seven per cent in October but could increase it by only 2.5pc through 30 paisa per unit surcharge and has now committed to make up for the remaining part in January and February.
The government has also made a commitment to fully pass-through of the cost of imported LNG to the end-user purchase price including Compressed Natural Gas as it comes online.
Authorities are committed to make further adjustments in January and February to recover the remaining gap to reduce electricity subsidies to 0.7 per cent of the GDP for fiscal year 2014-15, and limit the accumulation of circular deb.