AT a time when people were strongly resenting against inflated electricity bills, the caretaker government on Friday said that increasing gas rates “across the board” ahead of winter was inevitable to contain the gas-sector circular debt growing at the rate of Rs350 billion per year. The government said it also intends to revitalize an economy that’s seen months of decline due to strict import regulations.
Key federal ministers, while speaking at a news conference, defended the move linking it with international commitments, a reference to the assurances given to the International Monetary Fund (IMF). They justified rationalization of the gas prices saying the situation in the gas sector was very alarming as it faced Rs350bn loss per year. Going up by Rs1 trillion in the last four years, the gas sector’s circular debt, including interests, had piled up to Rs2.7tr and was growing very fast. However, like the power sector, the challenges in the gas sector are not because of low gas tariff but due to rampant theft and pilferage. There have been frequent reports about businesses like hotels, tandoors and industries either using gas through illegal connections or defaulting on payments. A number of gas stations preferred shutting down than pay their gas due to the concerned companies. We would, therefore, urge the Government to launch a crackdown against theft of gas as well as this cannot be allowed when the country has severe shortage of gas and imports it from other countries at the expense of huge foreign exchange. There is also a need to expedite implementation of both TAPI and IP gas pipeline projects as they would help mitigate the woes of the country as far as energy security is concerned.
