ISLAMABAD: The government is working on a new gas pricing mechanism that would shift from the current biannual system to a monthly or quarterly determination, aiming to curb the growing circular debt, which reached Rs2.7 trillion by March 2024.
A 20-member task force led by Deputy Prime Minister Ishaq Dar has directed the petroleum division to draft recommendations for amending the OGRA Ordinance to facilitate the new pricing structure. Currently, gas prices are set twice a year, on July 1 and January 1.
While some officials in the petroleum division support maintaining the existing system, citing agreements with Exploration and Production (E&P) companies, Federal Petroleum Minister Musadik Malik backs the proposed change, believing it will better control circular debt, which now surpasses the power sector’s debt of Rs2.665 trillion.
Story by Khalid Mustafa
