The government has assured the IMF that the Rs140 billion cross-subsidy given to gas consumers will be eliminated by January 2027.

Thereafter, the concessions given on gas and electricity will be given based on the income of the consumer instead of his consumption, and data from the Benazir Income Support Program (BISP) will be used for this purpose.

According to senior officials of the Petroleum Division, in the current system, gas is provided at low rates to protected and some non-protected consumers, while the burden of this concession is borne by industries, commercial consumers, CNG stations, the cement sector and domestic consumers who use more gas.

Now this system will be abolished and all consumers will be charged the same average rates, while only low-income households will be given direct financial assistance.

Officials say that currently the average gas tariff is Rs 1,750 per MMBtu, but protected consumers are paying much lower rates.

An important meeting of the IMF mission was held with Federal Finance Minister Muhammad Aurangzeb. According to a statement from the Ministry of Finance, an important meeting was held with Federal Finance Minister Muhammad Aurangzeb in Islamabad.

The meeting discussed the country’s economic situation, the upcoming federal budget and economic reforms. The IMF mission was led by Mission Chief Iva Petrova.

The government reiterated its commitment to putting the economy on the path of stable and sustainable growth. The Governor of the State Bank, the Secretary of Finance, the Chairman of the FBR and other high-ranking officials also attended the meeting.

Consultations are ongoing between the government and the IMF on the economic reform agenda, and the upcoming budget is expected to focus on fiscal discipline and economic stability.