In a recent development, the Economic Coordination Committee (ECC) of the Cabinet has given the nod for a 35.13% increase in gas prices, effective from February 1, 2024. The decision, chaired by Caretaker Finance Minister Dr. Shamshad Akhtar, comes with a recommendation for a uniform gas price for fertilizer plants.
This move follows Pakistan’s commitment to the International Monetary Fund (IMF) to communicate the semi-annual gas tariff adjustment decision by February 15, 2024. While reports suggest a potential 40% hike in gas prices, the ECC has proposed modifications, with a focus on finalizing adjustments for various sectors. There is a possibility of a reduction in prices for the domestic sector.
The ultimate approval for the proposed increase will sought from the federal cabinet on Thursday. The ECC, after thorough deliberation, emphasized that the revision of sale price tariffs should align with the revenue requirements of the Sui companies.
In a bid to address concerns over recent unwarranted increases in urea prices, the ECC has instructed the Competition Commission of Pakistan (CCP) to investigate and hold accountable those responsible. Additionally, the Ministry of Industries has been direct to ensure stability in urea prices in the market.
The ECC also reviewed and approved the Federal Board of Revenue’s proposal regarding the rationalization of the criterion for an enhanced 25% sales tax rate on locally manufactured/assembled vehicles (PCT87.03).
These decisions mark a significant step in addressing economic challenges and ensuring a balanced approach to gas pricing, industry stability, and national security.
 of the Cabinet has given the nod for a 35.13% increase in gas prices, effective from February 1, 2024. The decision, chaired by Caretaker Finance Minister Dr. Shamshad Akhtar, comes with a recommendation for a uniform gas price for fertilizer plants.){kind=link}