ISLAMABAD: The government has decided to abolish the existing 12-slab gas tariff structure and introduce a uniform gas tariff for consumers.
Under the proposed system, protected consumers will be shifted to an income-based subsidy mechanism. The government plans to protect low-income households through targeted subsidies rather than maintaining separate protected tariff slabs.
The proposed reform is aimed at replacing the existing cross-subsidy mechanism with a simpler and more targeted system.
The government and the International Monetary Fund (IMF) are expected to discuss and finalise a timeline for eliminating cross-subsidies and introducing a single gas tariff during the Fund’s fourth review of Pakistan’s economic programme, expected to take place in September or October 2026.
Under the planned arrangement, subsidies would be directed specifically towards eligible low-income consumers, while the broader consumer base would be brought under a common gas pricing structure.
The move is expected to form part of wider reforms aimed at improving the efficiency and transparency of the gas pricing system and reducing the financial burden created by the existing cross-subsidy structure.
