The Economic Coordination Committee (ECC) of the Cabinet, on Friday, gave its nod to a revised natural gas pricing structure for the fiscal year 2025–26, which includes a price increase for bulk consumers.
The ECC meeting, chaired by Minister for Finance and Revenue, Senator Muhammad Aurangzeb, addressed a summary from the Petroleum Division concerning gas tariff adjustments.
Under the Oil and Gas Regulatory Authority (Ogra) Ordinance, the federal government is mandated to announce revised consumer gas prices within 40 days of a determination to ensure full cost recovery and adherence to regulatory requirements.
This decision also aligns with the structural benchmarks agreed upon with the International Monetary Fund (IMF), specifically the rationalization of captive power tariffs and a strategic shift from broad cross-subsidies to direct, targeted support for lower-income households.
According to a press release issued by the finance ministry, the ECC opted to keep gas prices unchanged for household consumers. However, fixed charges within the domestic sector were re-adjusted to help recover asset costs.
The committee approved an average 10% increase in gas prices for bulk consumers, natural gas-powered electricity generation plants, and the industrial sector.
The ECC also granted in-principle approval for a risk coverage scheme designed for small farmers and underserved areas. This initiative is projected to integrate 750,000 new agricultural borrowers into the formal financial system and generate an additional Rs300 billion in credit over three years.
The scheme is set to be launched on August 14, 2025, pending further refinements and the incorporation of necessary safeguards.
In addition, the ECC reviewed and approved several technical supplementary grants (TSGs) for various ministries. These include Rs15.839 billion for the Ministry of Defence, Rs829.67 billion and Rs1,774.20 billion for the Finance Division to cover debt repayments, Rs1.765 billion for the Ministry of Interior & Narcotics Control, and Rs5.5 billion for the Strategic Plans Division for SUPARCO.
The ECC also sanctioned the formation of a steering committee tasked with assessing the feasibility of sugar imports to stabilize market prices. Furthermore, it directed the State Bank and Finance Division to present a revised home remittance incentive scheme by July 31.
The meeting saw the attendance of key officials, including Power Minister Sardar Awais Leghari, Petroleum Minister Ali Pervaiz Malik, and SAPM on Industries Haroon Akhtar Khan, among others.
