Islamabad, June 28, 2025: In accordance with the structural criteria outlined by the International Monetary Fund (IMF), the Economic Coordination Committee (ECC) of the Cabinet on Friday approved a new natural gas pricing model, involving an average 10 percent increase in prices for bulk, industrial, and power sector consumers.
At the same time, to protect domestic consumers from further financial pressure, the ECC resolved to keep existing gas tariffs unchanged for households, while endorsing a rise in fixed charges within the residential category to help recover asset-related costs.
The ECC gave the nod to a proposal put forward by the Petroleum Division, under Finance Minister Muhammad Aurangzeb instructions introducing a revised pricing scheme to be implemented from July 1, 2025, under the fiscal year 2025–26.
As per the new framework, the government will announce updated gas tariffs for consumers within 40 days following a determination by the Oil and Gas Regulatory Authority (OGRA), as mandated by the OGRA Ordinance.
READ MORE: Govt Announces Massive Increase in Gas Prices
The revised system aims to guarantee full cost recovery, adhere to regulatory requirements, and meet IMF obligations — which include streamlining captive power tariffs and replacing broad subsidies with targeted relief for low-income groups.
READ MORE: Government May Add Fuel Price Adjustment to Gas Bills
In additional matters, the ECC gave a preliminary green light to a risk-sharing initiative for small-scale farmers and underprivileged areas, scheduled to commence on August 14. The initiative is designed to bring 750,000 new individuals into the formal financial network by offering agricultural loans of up to Rs750,000.
A total of Rs300 billion in fresh agricultural financing will be distributed over a span of three years. To cover risk and administrative expenses of financial institutions, Rs37.5 billion will be needed between FY2027 and FY2031.
