The federal government has finalized a new strategy to reduce the growing circular debt in the gas sector without increasing gas tariffs, sources told ProPakistani.
Under the proposed plan, the financial burden of gas sector circular debt will be shifted to consumers of petroleum products. The government is considering imposing an additional petroleum levy of Rs. 5 per litre to support the initiative.
Deputy Prime Minister and Foreign Minister Ishaq Dar is currently reviewing proposals related to the additional petroleum levy. Officials said the Ministry of Petroleum has forwarded detailed working papers to the Prime Minister’s Office, which were later shared with the deputy prime minister for evaluation.
Sources revealed that the plan aims to eliminate the gas sector’s circular debt over the next six years. The total circular debt, estimated at Rs. 1.7 trillion will be addressed through a combination of fiscal measures and cost-saving initiatives.
Of the total amount, Rs. 1.4 trillion will be adjusted against non-recovery, unaccounted-for-gas (UFG) losses, and tariff differentials. The remaining Rs. 300 billion will be covered under taxes and interest obligations.
Officials said the proposed Rs. 5 per litre petroleum levy is expected to generate only Rs. 500 billion, indicating that additional measures will be required to fully resolve the debt burden. Around Rs. 700 billion of the circular debt will be adjusted through dividends and additional tariff mechanisms.
Furthermore, the government plans to reduce LNG cargo imports, a move expected to save nearly Rs. 500 billion, significantly contributing to the overall debt reduction effort.
Same govt is crying about taxes on business 😆 🤣
Form 47 govt., 2.jobs aggressively, By squeezing the blood of awam and looting tax money income to increase their assests.