Efforts are underway to meet the IMF’s requirement of reducing the gas sector’s circular debt to zero. The government has initiated work on introducing quarterly gas price determinations.
Currently, the circular debt in the gas sector stands at Rs 2,887 billion.
Details of the government’s plan have begun to surface. Sources say the government intends to amend Section 2 of the OGRA Act, enabling gas price revisions on a quarterly basis.
Cross-subsidies will be abolished, and only deserving consumers will be provided subsidies through the Benazir Income Support Programme (BISP). Consumers will be charged the full cost of gas, while quarterly losses will be adjusted in consumer bills.
Sources add that domestic and protected consumers are currently receiving more than Rs150 billion in cross-subsidies from other sectors.
