Islamabad, Nov 29: The federal government is seeking a six-month delay in meeting the IMF’s requirement to disconnect captive power plants (CPPs) from gas supply by January 2025.
Key Points from the High-Level Meeting
- Tariff and Gas Supply Concerns
- Industrial gas tariffs will align with RLNG costs by January 2025 to boost grid electricity consumption.
- CPPs currently contribute Rs. 150 billion in cross-subsidies, essential for domestic gas consumers.
- Potential Impacts
- Commerce Minister: Warned of declining foreign exchange inflows and damaged exporter confidence.
- Petroleum Minister: Highlighted risks of increased circular debt and losses in the gas sector.
- Grid Transition Challenges
- Power Minister: Transitioning CPPs to the grid would require over a year and Rs. 25 billion for infrastructure upgrades.
- Concerns persist about the grid’s ability to ensure stable electricity.
Next Steps
The government will present detailed data to the IMF mission to negotiate lifting or delaying the condition.
