Government’s big increase in gas prices

Islamabad – In what appears to be a step towards meeting the International Monetary Fund (IMF) demands, the Government of Pakistan has approved a significant hike in gas tariffs. Starting July 1, 2025, fixed charges for all consumers will increase by up to 50%.

The decision was made during a meeting of the Economic Coordination Committee (ECC) of the federal cabinet, chaired by Finance Minister Muhammad Aurangzeb.

Gas prices for non-domestic users — including industrial, commercial, and power sectors — have been raised by 29%. This measure is expected to generate an additional Rs 72 billion in revenue.

The ECC also approved supplementary grants amounting to Rs. 856 billion to meet the financial needs of various government departments and projects. Economists have warned that this could place further strain on the national budget.

The committee did not conclude its review of sugar imports. The matter has been handed over to a political committee headed by the Minister for National Food Security and Research, who will review and submit recommendations.