The coalition government has removed a subsidy on petrol supplied to the export sector, meeting another International Monetary Fund (IMF) demand.
Ends of Gas Subsidy
According to information, the federal government eliminated the Rs80 billion gas subsidy to the export sector, which prompted the Sui Southern Gas Company (SSGC) to notify exporters that the supply of subsidised gas would cease on May 1.
According to the notification, the Oil and Gas Regulatory Authority (OGRA) approved tariff will be enforced to all export sectors on May 1, after which the export sectors will have to pay $4 more per MMBTU on Regasified Liquefied Natural Gas (RLNG).
It is worth noting that the federal government discontinued the subsidies following the IMF’s terms.
Earlier in the day, it was reported that the delay in reaching an agreement with the International Monetary Fund (IMF) had impacted the timeline for preparing the new budget.
“The strategy paper for Fiscal Year 2023-24 budget could not be prepared owing to political and economic uncertainty,” sources said.
“It was planned to prepare the budget strategy paper and get approval from the cabinet in second week of April,” sources said.
“The situation has affected the schedule of fixing the limit of development and current expenditures,” sources said.
Pakistan’s economy is in disarray due to financial difficulties and a delay in reaching an agreement with the International Monetary Fund (IMF) that would release much-needed cash critical to avoiding default.
On April 21, it was reported that the International Monetary Fund (IMF) had requested Pakistan to ‘do more’ to restart a delayed loan programme, despite guarantees from Saudi Arabia and the United Arab Emirates concerning external cash.
The meeting between Finance Secretary Hamid Yakoob and the International Monetary Fund in the United States was ‘unfruitful,’ as the international lender has given the proposal to arrange $1 billion from commercial banks to release the loan programme. The staff-level agreement was expected to be signed on February 9, but it was postponed due to IMF demands.
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