Caretaker cabinet delays gas tariffs hike
Business
Raising energy prices is one of the main IMF conditions
ISLAMABAD (Dunya News/Web Desk) – The caretaker federal cabinet on Monday decided to postpone the gas prices and review the matter in detail again – a decision which must have provided some relief to the people who are hit hard by inflation.
With rising food prices as well as energy tariffs, the planned increase will further worsen the prevailing cost-of-living crisis being experienced by tan overwhelming majority of people in Pakistan.
However, one has to see how the International Monetary Fund (IMF) is going to react given the fact that a team is scheduled to visit Pakistan from Nov 2 to the first review of the $3billion standby arrangement reached earlier this year.
A successful review is required for the release of second tranche under the deal as controlling circular debt and raising the power and gas tariffs are among the conditions set by the Washington-based world’s top lender.
Meanwhile, the country is already witnessing gas shortage with supply completely suspended to domestic consumers during night hours while some areas are already not getting any gas.
This situation is alarming as Islamabad hasn’t secured liquefied natural gas (LNG) deliveries despite the fact that the winter season is just round the corner when the gas demand reaches the highest level.
