The Economic Coordination Committee (ECC) of the Cabinet has approved a revised framework for natural gas pricing as part of ongoing economic reforms tied to Pakistan’s agreement with the International Monetary Fund (IMF). The decision was made during a session chaired by Finance Minister Muhammad Aurangzeb.
Under the new framework, the federal government will announce updated gas tariffs 40 days after the Oil and Gas Regulatory Authority (OGRA) issues its biannual pricing decisions.
Read more: Significant Oil and Gas Reserves Discovered in Khyber Pakhtunkhwa
For domestic users, gas rates will remain unchanged in the upcoming fiscal year. However, government officials confirmed that fixed monthly charges for households will be increased, though no specific figures have been released yet.
Meanwhile, the ECC approved an average 10% increase in gas prices for industrial sectors, wholesale buyers, and power generation units. This step is intended to reduce financial losses in the energy sector and aligns with broader fiscal objectives.
The committee also formed a ten-member steering body to assess the potential need for sugar imports. The team will submit its findings to the Cabinet Committee on Sugar amid growing concerns over limited sugar stocks and the risk of rising prices in the coming months.
In another significant decision, the ECC gave preliminary approval to a risk-sharing scheme aimed at supporting small-scale farmers. Scheduled for launch on August 14, the program aims to distribute 750,000 agricultural loans over the next three years, totaling Rs300 billion. The Ministry of Finance projects Rs37.5 billion will be needed to cover associated risks and administrative expenses for banks.
Additionally, the ECC approved several technical supplementary grants, including:
- Rs158.4 million for the Ministry of Defence
- Rs2.604 trillion for repaying domestic and foreign debts
- Rs5.5 billion for SUPARCO (Space & Upper Atmosphere Research Commission)
Officials described these approvals as efforts to enhance financial discipline and sectoral efficiency, in line with Pakistan’s commitment to reduce untargeted subsidies and meet IMF requirements for structural reforms, particularly in the energy sector.
