The International Monetary Fund (IMF) has advised the Pakistani government to discontinue subsidies for protected gas consumers as part of efforts to curb expenditure. While gas prices burden consumers, the IMF emphasizes redirecting subsidies to the poorest segments of society.
Read also: IMF Urges Pakistan to End Cheap Gas Subsidies to Fertilizer Plants
IMF recommends providing relief to low-income consumers through the Benazir Income Support Program, aiming to target assistance more effectively. Additionally, the Fund suggests halting subsidies for the transfer of Regasified Liquefied Natural Gas (RLNG) to domestic consumers.
Read also: IMF Reaches Staff-Level Agreement with Pakistan for $1.1 Billion
In the previous fiscal year, the federal government allocated Rs40 billion for RLNG subsidies, with an additional Rs29 billion already spent this year. This move aligns with IMF conditions, which have already led to a significant increase of 40-65% in consumer tariffs.
