Pakistan is close to getting a $1.2 billion payout from the International Monetary Fund. Review talks between Islamabad and the Fund are in their final stage, Dawn reported on Monday.
The money would come from two IMF programmes. One is the $7 billion Extended Fund Facility. The other is the $1.4 billion Resilience and Sustainability Facility.
IMF mission chief Iva Petrova is leading the talks. Her team is expected to leave Pakistan within days, according to officials cited by Dawn. The officials said the Fund made no new demands this round. It only asked Pakistan to make up for past delays.
Both sides are now finishing a document called the Memorandum of Economic and Fiscal Policies. This paper lists Pakistan’s economic promises to the IMF.
Winter gas supply at risk
Pakistan may face a gas shortage from December to February. Tension between the United States and Iran has made it harder to buy LNG on the open market.
Gas companies asked for 22 LNG cargoes for the winter months. A government energy task force, led by Lt Gen Zafar Iqbal, has promised only 10 to 12 cargoes. Officials called this a best-effort target, not a fixed number.
The real number may be lower still. Sources told Dawn that Pakistan could end up with only 7 to 8 cargoes. Each cargo holds about 100 million cubic feet of gas and costs around $100 million.
Buying these cargoes needs the prime minister’s approval. The State Bank and the finance ministry must also sign off, because of the cost involved.
Gas debt climbs to Rs 3.6 trillion
Pakistan’s gas sector debt has grown to Rs 3.6 trillion. Of this, Rs 1.8 trillion is unpaid principal. The rest is interest and late-payment charges.
Low pricing for some consumers adds to the problem. Protected households pay only Rs 200 to Rs 350 per mmBtu for gas. This rate does not cover the cost of supply.
Only 4 of the 12 consumer price categories cover their own supply cost in winter. The other 8 stay below breakeven for about 8 months of the year.
