ISLAMABAD: In another piece of bad news for the masses, the International Monetary Fund (IMF) has pressured the government to transfer the increase in gas prices to consumers, ARY News reported, citing sources in the Ministry of Finance.
Ministry of Finance sources state that circular debt in the gas sector has surpassed Rs 3,600 billion.
Meanwhile, the government has started working on a deregulation project in the gas sector. Under this plan, the government intends to privatize both gas distribution companies and attract private sector investment into the sector.
The deregulation and investment plan will soon be presented to the Prime Minister.
Sources said that the Ministry of Finance, the Ministry of Petroleum, and relevant departments have been directed to prepare the proposal.
According to sources, the proposed gas sector deregulation is being considered in line with IMF conditions and was previously discussed during the last economic review.
This development comes as a blow to the public, as the burden of price hikes will be passed on to consumers, alongside an increased role for the private sector.
Once the Prime Minister approves the initial proposal, a final decision will be taken.
