The Economic Coordination Committee (ECC) of the Cabinet approved a new framework for natural gas pricing, leaving domestic consumer rates unchanged.
The decision came during a meeting chaired by Finance Minister Muhammad Aurangzeb and forms part of the broader economic reforms under the International Monetary Fund (IMF) programme.
According to an official handout, the federal government will now announce revised gas prices 40 days after the Oil and Gas Regulatory Authority (OGRA) issues its biannual determination.
While the ECC opted to maintain current gas prices for domestic users for the new fiscal year, official sources confirmed that fixed charges for household consumers have been approved for an increase. No details were provided on the scale of the hike in fixed charges.
The committee gave its nod to an average 10 per cent hike in gas tariffs for industrial units, wholesale consumers and power plants—an increase that officials say is necessary to offset fiscal deficits in the energy sector.
In another key development, the ECC constituted a ten-member steering committee to evaluate the possibility of sugar imports. The committee will present its recommendations to the Cabinet Committee on Sugar (CC) shortly. The move comes amid concerns over domestic sugar reserves and anticipated price volatility in the coming months.
Additionally, the ECC gave in-principle approval to a risk coverage scheme aimed at small-scale farmers. The scheme, set to launch on August 14, targets the disbursement of 750,000 new agricultural loans, with a total of Rs300 billion to be released over the next three years. The Ministry of Finance has estimated that Rs37.5 billion will be required for the risk coverage mechanism and administrative costs incurred by banks.
The ECC also approved several technical supplementary grants across key sectors. These include:
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Rs158.4 million for the Ministry of Defence,
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Rs2,604 billion earmarked for the repayment of both domestic and foreign loans,
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Rs5.5 billion for SUPARCO (Space & Upper Atmosphere Research Commission).
Officials termed the decisions as part of efforts to streamline financial planning and improve sectoral efficiency amid the country's ongoing fiscal consolidation drive.
The ECC’s decisions, particularly on gas prices, come against the backdrop of IMF conditions that require energy sector reforms and reductions in untargeted subsidies.
