Burning burden.
The recent decision to increase gas prices in Pakistan has sent shockwaves through the nation, especially at a time when half of the day is marred by gas supply disruptions. While Pakistan's citizens already grapple with insufficient gas supply, a hike in gas prices adds further strain to households and industries. The rationale behind this move is that it is a necessary step to comply with IMF conditions. However, it raises serious questions about the impact on people. The caretaker government's approach to addressing the circular debt issue seems to be shifting the burden heavily onto domestic and other consumers.
The gas sector's annual loss is a staggering Rs350 billion, and the total circular debt has reached an alarming Rs2.70 trillion. These figures alone underscore the complexity of the issue. It is clear that reforms are needed to address the financial woes of the gas sector. However, the method chosen to implement these reforms should be mindful of the citizens who are already grappling with energy shortages.
The decision to raise the tariffs of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) by Rs 415 per mmbtu and Rs 417 per mmbtu, respectively, is bound to have ripple effects across the economy. The increased cost of gas will not only impact household budgets but also affect industries that rely heavily...
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