Gas Prices Set to Rise as IMF Urges Government to Pass On Increases, Finance Ministry Says

ISLAMABAD — The International Monetary Fund is urging Pakistan’s government to shift the recent surge in gas prices onto consumers, according to sources within the Finance Ministry, ARY News reported. Officials say the sector’s circular debt has now exceeded Rs 3,600 billion.

At the same time, the government is drafting a deregulation plan for the gas industry. The proposal calls for the privatization of gas distribution companies and seeks to draw private‑sector investment into the market. Ministries of Finance and Petroleum, along with other relevant agencies, have been instructed to prepare the details for presentation to the Prime Minister.

Sources note that the deregulation scheme is being shaped to meet IMF conditions and was first raised during the last economic review. If the Prime Minister signs off on the initial outline, a final decision will follow. The move is expected to place the cost of higher gas prices squarely on households while expanding the role of private firms in the sector.