Islamabad: Government has once again will increase price of gas before February 15 while it will gradually decrease subsidy in the energy sector as Pakistan has ensured the International Monetary Fund (IMF).
Pakistani plan regarding decreasing circular debts of engergy has emerged according to this the government will end subsidy in the energy sector in coming two years while Oil and Gas Regulatory Authority (OGRA) will issue notification regarding rise in the gas prices.
Government will reduce the circular debt of gas while and again will increase price of gas.
As per the document the government subsidies on tube well will be ended from next year while subsidy will be stopped in Punjab, Sindh and KP.
While in second phase quarter cross- subsidy to be ended on the tube wells while different options are in consideration to end subsidy in Balochistan as well.
As per the document, a cross subsidy given to fertilizer sector on gas will be ended from March this year. Likewise the cross subsidy to the export sector will be ended and will be equalized with non-export industry.
Local gas and imported RLNG prices will be equalized.
As per plan given to the IMF by Pakistan, the management control of electricity distribution companies will be given to the private sector for which transanction adviser will be appointed till April this year.
On the other hand the government has a plan to introduce an independent monitoring system for the feeders having more losses.
As per the document, the circular debt of gas has risen to 2,84 billion from Rs 421 billion for which a six-monthly framework will be ensured to change gas prices.
Pakistan will implement on measures based on reforms in the energy sector adding that the circular debt of gas will be lowered then will be ended.
