Pakistan is set to modify gas tariffs for the fertilizer sector in Octoberin response to the International Monetary Fund’s request. This decision wasmade by the interim government due to the IMF’s refusal to provide gassubsidies to the fertilizer industry.
This tariff adjustment coincides with the commencement of a review with theIMF as part of a $3 billion Structural Adjustment Program (SAP) loan.
Under the new pricing structure, the fertilizer sector is expected towitness a gas tariff increase of around Rs580 per MMBtu for feedstockpurposes. The cost of gas for fertilizer production will rise by Rs278 perMMBTu, resulting in a new gas rate of Rs1,580 per MMBTu.
Read Top Stories
This initiative to revise gas prices in various sectors, includingfertilizer production, is part of a broader strategy to address thesignificant circular debt in Pakistan’s energy sector.
