The Government of Pakistan has assured the International Monetary Fund that the existing Rs140 billion cross-subsidy on gas consumers will be completely phased out by January 2027 as part of broader economic reforms.
“Fast & Furious” TV Series in Development at Peacock Ahead of Franchise’s Final Film
According to senior officials from the Petroleum Division, the current subsidy mechanism allows “protected” and some “non-protected” domestic consumers to receive gas at reduced rates, while industries, commercial users, CNG stations, cement manufacturers, and high-consumption households bear the financial burden through higher tariffs.
Under the proposed reforms, all consumers will pay a uniform average gas tariff, currently estimated at Rs1,750 per MMBtu. Instead of consumption-based subsidies, financial assistance for electricity and gas will be linked to household income levels.
Officials said the government plans to use data from the Benazir Income Support Programme to identify low-income households eligible for direct subsidies.
Meanwhile, Federal Finance Minister Muhammad Aurangzeb held a key meeting in Islamabad with an IMF delegation led by Mission Chief Eva Petrová.
According to the Ministry of Finance, discussions focused on Pakistan’s economic outlook, the upcoming federal budget, and the implementation of structural reforms aimed at strengthening fiscal discipline and ensuring macroeconomic stability.
The meeting was also attended by the Governor of the State Bank of Pakistan, the Finance Secretary, the Chairman of the Federal Board of Revenue, and other senior officials as consultations with the IMF continue on Pakistan’s reform agenda.
