Gas price should not increase for next few months: PM

ISLAMABAD: Prime Minister Imran Khan on Friday directed that the price of gas should not be increased for the next few months as he got a briefing on the prices of petroleum products in the international market.

Special Assistant for Petroleum Nadeem Babar, referring to gas prices, told the prime minister that gas prices were increased on July 1, 2019. Now, the Ogra has recommended a six to seven per cent increase in gas prices. The prime minister called for intensifying efforts to provide all possible relief to the common man, especially the lower classes. He chaired a meeting on reducing electricity prices and revolving loans, especially in the power sector. Federal Ministers Makhdoom Khusro Bakhtiar, Dr Abdul Hafeez Sheikh, Mohammad Hammad Azhar, Syed Fakhr-e-Imam, Omar Ayub, Asad Umar, Special Assistants Nadeem Babar, Dr Waqar Masood, Tabish Gohar, former finance minister Shaukat Tareen, federal secretaries and other senior officers were present in the meeting.

A briefing was given to the prime minister on current electricity prices, revolving loans and proposed strategies to reduce these loans. The meeting was informed that as a result of the efforts of the government, while the trend of reduction in technical and non-technical losses has come to the fore, the collection of electricity bills has also improved. The meeting was informed that a strategy has been formulated to reduce transmission and distribution losses. It was told that every effort is being made to minimize the gap between the actual losses incurred in terms of delivery and distribution and the rate approved by the NEPRA.

The prime minister was informed that the target set in the next two years for controlling losses and improving recoveries would result in an improvement of about Rs 700 billion, which would benefit the consumers.

Addressing the meeting, the prime minister said while the most expensive power projects were implemented by the previous governments, the aspect of overcoming transmission and distribution losses and fixing the faults of the system was neglected. The prime minister said people are suffering today as a result of the shortcomings of the past.

Referring to the proposed strategy for the improvement of the power sector, the prime minister directed that the responsibilities of all the ministries concerned for achieving these targets be clarified so as to ensure timely implementation of measures and completion of targets.

Meanwhile, Prime Minister Imran Khan chaired a review meeting on prices of flour, sugar and other essential commodities. Federal Ministers Makhdoom Khusro Bakhtiar, Dr Abdul Hafeez Sheikh, Hammad Azhar, Syed Fakhr-e-Imam, Omar Ayub, Asad Umar, Special Assistants Nadeem Babar, Dr Waqar Masood, Tabish Gohar, former finance minister Shaukat Tareen, federal secretaries and other senior officers were present in the meeting.

The meeting discussed issues related to stabilization in the prices of essential commodities, especially flour, sugar, gas and petrol. The prime minister called on his economic team to ensure stability in flour prices till the government introduces a targeted subsidy scheme. He noted that a detailed programme is being introduced to provide direct subsidy on flour to the poor and the government will provide direct subsidy to the weaker sections of the society regarding the purchase of flour.

“The purpose of the government subsidy is to provide financial assistance to the weaker sections of the society so that the burden of inflation on them can be reduced as much as possible. Flour is the basic need and its reasonable price is imperative.

There is a need of ensuring timely import decisions by the government and the private sector keeping in view the future needs of wheat,” he said.

A briefing was given to the prime minister on the proposed measures to bring down the price of sugar. The meeting was informed that a Ramazan Package of Rs 7 billion has been approved for the month of Ramazan.