Govt Pledges Timely Power and Gas Hikes to IMF

The Pakistani government has assured the IMF that electricity and gas prices will be increased on time to address the fiscal shortfall.

Authorities outlined measures to tighten tax laws, reform energy sectors, reduce circular debt and strengthen enforcement to support revenue collection.

A roadmap for further tax measures is expected by the end of this month, including a proposed five percent increase in federal excise duty.

Authorities plan levies on high-end sugary products and tighter monitoring in cement and sugar sectors to curb leakage.

Targeting non-filers and asset holders, the government aims to bring forty thousand large retailers under full POS monitoring within a two-year period.

Digital invoicing will be expanded and select items may be moved from the eighth GST schedule into the GST framework to broaden the tax base.

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The government reiterated the excess consumption scheme includes automatic adjustments and will end after three years or earlier.

Protections for vulnerable consumers will remain, while industry and agriculture tariffs may rise if revenue targets are missed.

A Gas Sector Circular Debt Management Plan will be published by March 2026 aiming for elimination of circular debt by fiscal year 2030-31.

Measures to reduce gas theft, cut line losses and privatise distribution companies in Islamabad, Gujranwala and Faisalabad are scheduled for early 2026.

Additionally, a power plan to eliminate seven thousand megawatts of excess capacity is expected to lower tariffs and save about seventeen billion dollars.