IMF Approval Sought for Uniform Gas Tariff From July 2027

ISLAMABAD: Pakistan’s Petroleum Division has decided to seek approval from the International Monetary Fund (IMF) to introduce a uniform gas tariff across the country from July 1, 2027.

Under the proposed reform, the government would have to phase out the existing cross-subsidy mechanism and allocate around Rs162 billion for targeted financial assistance to low-income households.

The proposed changes would also abolish Pakistan’s current 12-slab gas tariff structure, under which consumers pay different rates based on their monthly gas consumption.

Instead, consumers across different categories would gradually be moved towards a uniform average tariff of around Rs1,708 per million British thermal units (MMBtu).

The reform is aimed at replacing the existing subsidy structure with targeted support for households that require financial assistance, while moving the gas pricing system towards a more uniform tariff framework.