IMF Requests Pakistan’s Plan to Resolve Rs. 2,800 Billion Gas Sector Circular Debt
The International Monetary Fund (IMF) has urged Pakistan to present a detailed strategy to tackle the gas sector’s circular debt, which has reached Rs. 2,800 billion, according to official sources.
The federal government is working on a debt resolution plan that includes securing concessional bank loans of up to Rs. 2,000 billion. Talks are underway with banks to seek interest waivers or reductions, especially on Rs. 800 billion of accrued interest.
To aid repayments, the government is considering introducing a petroleum levy ranging from Rs. 3 to Rs. 10 per litre, potentially generating around Rs. 180 billion annually. A surcharge on gas bills is also being discussed as part of the repayment approach.
The plan envisions clearing the circular debt over five years. Officials highlight that successful elimination will also depend on reducing operational losses faced by Sui gas companies and other state-owned oil and gas firms.
