Cabinet divided over 69% gas price hike amid IMF warning

Federal cabinet members remained divided on Tuesday over a proposed increase of up to 69% in gas prices, amid warnings that any delay beyond Thursday could cost Pakistan $1.2 billion, the last loan tranche from the International Monetary Fund. The Economic Coordination Committee (ECC) of the cabinet had to defer approval after supposedly pro-IMF programme cabinet members also spoke against the fresh price hike, according to meeting participants. The Industry Minister, Dr Gohar Ejaz, representing the textile sector, opposed increasing gas prices for in-house power generation plants of industrialists fuelled by cheaper gas. Two other members opposed gas price increases for residential consumers ahead of Ramazan. They also sought time to study the proposal, which was not part of the regular meeting agenda.