ECC of Cabinet gave approval for hike in gas tariff up to 193% starting from November 1, 2023, in order to meet IMF condition
ISLAMABAD: In another blow to inflation-hit consumers, the Economic Coordination Committee (ECC) of the Cabinet on Monday gave approval for the hike in the gas tariff up to 193 percent starting from November 1, 2023, in order to meet the IMF condition.
As per the approved summary, the fixed monthly charges for protected consumers were revised upward from Rs10 to Rs400 and for non-protected from Rs460 to Rs1000 and for higher slabs up to Rs2000.
The government has hiked the local gas tariff up to 173 percent for non-protected domestic consumers, 136.4 percent for commercial, 86.4 percent for export, and 117 percent for the non-export industry.
The exporters have managed to get maximum benefit as their tariff will go up by 86 percent with effect from November 1, 2023. Earlier, it was proposed to hike the average tariff from October 1, 2023, but the ECC granted its approval with effect from November 2023.
According to the announcement of the Ministry of Finance, Federal Minister for Finance, Revenue, and Economic Affairs, Dr Shamshad Akhtar presided over a meeting of the Economic Coordination Committee (ECC) of the Cabinet. The meeting considered various agenda points and summaries submitted by the Ministries of Industries and Production, the Ministry of Energy and Petroleum, the Ministry of National Food Security and Research, the Earthquake Reconstruction and Rehabilitation Authority (ERRA), and the Ministry of Finance.
The Ministry of Industries and Production submitted a summary regarding the measures to meet the requirements of urea for Rabi season 2023-24. The ECC discussed the proposal in detail and approved immediate import of 200,000 tonnes of urea fertilizers. The meeting also directed to ensure uninterrupted supply of gas for the fertilizer industry. It was also decided that the provinces would be asked to act more proactively to bear the importation cost.
The meeting also deliberated over a summary submitted by the Earthquake Reconstruction and Rehabilitation Authority (ERRA) for approval of the Technical supplementary Grant of Rs484 million to meet critical expenditure on pay and allowances of 415 contract and project employees from July 2023 onwards.
The ECC directed the Ministry of Planning, Development and Special Initiatives to identify the savings to finance the salaries of the ERRA employees.
A summary of Ministry of Finance regarding the establishment of the National Credit Guarantee Company Limited to support the credit enhancement of the Small and medium enterprises (SMEs) was also considered and approved by the forum.