The government has declared that it will eliminate all consumer subsidies for gas and electricity, including those given by provinces, in an effort to rein in the rapidly increasing circular credit in the energy industry.
The move is a component of a larger plan to deal with the financial crisis, which has resulted in a cumulative circular debt of more than Rs4.8 trillion. The new measures have been reported to the International Monetary Fund (IMF), which has developed a plan to increase gas tariffs beginning on February 15, 2025.
The World Bank and IMF claim that Pakistan’s economy is severely hampered by the energy sector. As a result, the government has created a plan to reduce the Rs4.88 trillion in circular debt in both sectors. Additionally, a choice has been made.
