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ISLAMABAD: The government has cancelled the Rs 100 billion subsidy to gas consumers for the IMF loan and the Rs 29 billion subsidy to consumers for RLNG diversion by June 2024.
According to the English newspaper The News, a senior official of the Ministry of Energy said that the government has started implementing the conditions of the International Monetary Fund for the new IMF program of $8 billion.
This time, the government has increased the gas tariff from 40 to 65.29 percent for protected domestic consumers from February 1, 2024, to reduce cross-subsidy, according to the government, there is still room to increase the tariff.
On the other hand, there are reports that the IMF wants the weaker section to be protected with cheaper tariffs until an alternative mechanism is adopted through the BISP programme.
“We have to give the IMF a plan to subsidize protected consumers through the Benazir Income Support Program or any other mechanism to charge them the full cost of gas to eliminate cross-subsidies,” government sources said. Relief will be provided through the procedure.