Why gas bill increase in May 2024 in Pakistan: The government plans to significantly increase gas prices, which could rise by up to 41% on average by mid-April.
This decision is part of the conditions attached to the International Monetary Fund’s (IMF) ongoing $3 billion lending program. This increase is expected to add to inflation, which is already a concern in the current market.
The IMF has stressed the need to increase gas prices to address the growing problem of circular debt.
This would be the second increase in fuel costs since November 2023. Notably, Pakistan has to implement its gas price increase by February 15, 2024 to meet IMF requirements.
IMF data suggests that circular debt in the gas sector had reached Rp 2.1 trillion or 2.5% of GDP by the end of the last fiscal year, up 28% year-on-year.
Source: profit. Pakistan today
