The International Monetary Fund (IMF) has expressed grave concern regarding the surging circular debt of the gas sector, and a summary has been prepared for the Economic Coordination Committee (ECC) which may result in a drastic increase in gas prices, exceeding 100 percent, ahead of the lender’s upcoming review in November.

Sources informed ProPakistani that by the end of the current financial year, there is the possibility of a staggering Rs. 46 billion increase in the gas sector’s circular debt. Meanwhile, Finance Ministry sources have warned that neglecting the necessity to raise gas rates could lead to an additional shortfall of Rs. 185 billion.

Sources said a failure to increase Re-gasified Liquefied Natural Gas (RLNG) prices for domestic consumers might result in an additional Rs. 21 billion shortfall. Sources further disclosed that gas companies have already incurred losses totaling Rs. 46 billion in the first quarter of FY24 (July-September).

The overall circular debt within the gas sector has now reached a daunting Rs. 2,700 billion, according to the Ministry of Finance’s latest figures.

A summary for jacking up gas rates to the tune mentioned above will be presented in the upcoming ECC meeting, sources added.

Source: Pro Pakistani