Washington DC January 21 2024: International Monetary Fund demand to cut gas supplies to captive power plants and furthre increase gas tariffs as demanded by gas companies in its latest published report on Pakistan.
“The full phasing out of captive power usage, which reduces demand for electricity generated in the grid, forces electricity tariffs of grid consumers to cover unused capacity, and exacerbates power sector liquidity pressures” states IMF in its report.
Morover, regular (automatic) implementation of semiannual gas tariff adjustments, including OGRA’s December 2023 determination within the required 40-day window.
Moreover, IMF asked to establish a more level playing field among non-household consumers, including by eliminating cross-subsidies to fertilizer producers and favorable rates for well-connected industries.
The international donor asked government to develop a plan to reduce circular debt in the gas sector.
