Lender warns lower tariffs could fuel a fresh rise in the gas sector’s circular debt.
Image: Arab News Pakistan
The International Monetary Fund (IMF) has opposed a proposed reduction in gas prices in Pakistan, warning that lower tariffs could worsen the country’s circular debt.
According to the lender, reducing gas tariffs would create additional financial pressures in the energy sector and undermine efforts to contain the accumulation of unpaid liabilities.
The IMF has stressed the importance of maintaining cost-reflective pricing to improve the financial health of the gas sector.
The disagreement comes as the government weighs measures to provide relief to consumers while also meeting commitments under its IMF programme.
