The federal cabinet has approved a 67% increase in residential gas prices. The decision was made during a federal cabinet meeting on Thursday, presided over by caretaker Prime Minister Anwaar ul Haq Kakar.
IMF’s Stand-by Agreement
The hike was approved to meet the International Monetary Fund’s (IMF) conditions under the Stand-by Agreement (SBA).
The approval means that petrol prices for fertiliser plants will rise by 700 percent, as the government has withdrawn Rs. 50 billion in subsidies given to a few fertiliser plants.
Notification issued by OGRA
According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the decision will take effect on February 1 and new bills will be issued with revised rates.
It is worth noting that this is the second increase in gas prices under the caretaker government, with petrol prices previously increased by up to 1100 percent.
The cabinet also approved the appointment of Syed Tariq Muhammad ul Hassan as Managing Director of Pakistan Baitul Mal.
According to a press release issued by the Prime Minister House Media Wing, the decision was made based on the Ministry of Poverty Alleviation and Social Security’s recommendations.
Finance Ministry approve
The cabinet approved the transit/transfer of vehicle spare parts and new tyres used by the UNDP’s Afghanistan Country Office from Karachi Port to Kabul, Afghanistan, based on the Ministry of Commerce’s recommendation.
On the recommendation of the finance ministry, the cabinet approved the exemption of JS Bank’s sponsoring shareholder, Shabbir Ahmed Randiri, from Section (IV)(1)14 of the Banking Companies Ordinance.
Shabbir Ahmed, a 7.06 percent sponsoring shareholder of JS Bank Limited, will be able to exercise his voting rights under this exemption.
The cabinet approved the decisions made during a federal cabinet meeting on energy on February 6. It also approved the decisions of cabinet committees on legislative cases and privatisation made on February 7.
The meeting also approved the cabinet’s Economic Coordination Committee decisions from 7 and 14, including the decision to raise gas prices.
To read our blog on “Govt. to tell news on Fuel prices tomorrow,” click here
