The federal government has approved a 193% increase in gas prices, according to reports.
Additionally, the fixed charges on gas meters will see a hike from Rs10 to Rs 400 per month, as per reports. The increased gas prices are set to go into effect on November 1.
Earlier this week, the Economic Coordination Committee (ECC) of the Cabinet approved various proposals, including the revision of natural gas pricing, the immediate import of 200,000 MT of urea fertilizer, and 1.00MMT of milling wheat for the fiscal year 2023-24.
The Caretaker Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar, chaired the meeting.
The Ministry of Industries and Production submitted a proposal to meet urea requirements for the Rabi season 2023-24, and the ECC approved the immediate import of 200,000 MT of urea fertilizers. The committee also directed that gas supply to the fertilizer industry be ensured and that provinces bear the importation cost.
A proposal regarding the revision of natural gas sale pricing for the fiscal year 2023-24 was approved, effective from November 1, 2023, instead of October 1, 2023, as per the tariff schedule submitted by the Ministry of Energy (Petroleum Division).
The ECC also approved the cost-effective import of 1.00 MMT of milling wheat for the year 2023-24 through the TCP under open tendering. It also endorsed a proposal to encourage the private sector to import specified milling wheat under the import policy order of 2022.
Furthermore, the ECC directed the Ministry to conduct a third-party verification of the wheat stock in the country.
The committee also discussed a proposal by the Earthquake Reconstruction and Rehabilitation Authority (ERRA) for the approval of a Technical Supplementary Grant of Rs. 484 Million to cover expenses related to pay and allowances of 415 contract and project employees from July 2023 onwards.
The ECC directed the Ministry of Planning, Development, and Special Initiatives to identify savings for financing ERRA employee salaries.
Additionally, the ECC approved a proposal to establish the National Credit Guarantee Company Limited to support credit enhancement for Small and Medium Enterprises (SMEs).
The meeting was attended by caretaker ministers and senior government officials from relevant ministries.
