ECC greenlights hike in gas prices for industries, power plants
Committee accords in-principle approval of risk coverage schemes for farmers
June 27, 2025
- ECC approves 10% increase in gas prices for bulk consumers.
- Okays TSG of Rs15.839bn for Ministry of Defence.
- Approves to form body to assess sugar import possibility.
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved a revised natural gas pricing structure for the fiscal year 2025–26, allowing a hike in prices for bulk consumers.
The ECC, which met under the chairmanship of Minister for Finance and Revenue, Senator Muhammad Aurangzeb took up a summary submitted by the Petroleum Division regarding the gas tariff adjustment.
Under the Oil and Gas Regulatory Authority (Ogra) Ordinance, the federal government is required to notify revised consumer gas prices within 40 days of s determination to ensure cost recovery and regulatory compliance.
The move also aligns with structural benchmarks agreed with the International Monetary Fund (IMF), including rationalisation of captive power tariffs and a shift from cross-subsidies to direct, targeted support for low-income consumers.
According to a press release issued by the finance ministry, the ECC decided to maintain gas prices for household consumers, with only fixed charges re-adjusted in the domestic sector to recover asset costs.
It approved an average 10% increase in gas prices for bulk consumers, power plants operating on natural gas, and the industrial sector.
The committee also accorded in-principle approval to a risk coverage scheme aimed at small farmers and underserved areas, expected to bring 750,000 new agricultural borrowers into the formal financial system and generate Rs300 billion in additional credit over three years.
The scheme is scheduled to launch on August 14, 2025, pending further refinements and inclusion of safeguards.
Additionally, the ECC reviewed and approved multiple technical supplementary grants (TSGs) for different ministries, including Rs15.839 billion for the Ministry of Defence, Rs829.67 billion and Rs1,774.20 billion for the Finance Division for debt repayments, Rs1.765 billion for the Ministry of Interior & Narcotics Control, and Rs5.5 billion for the Strategic Plans Division for SUPARCO.
The ECC also approved the formation of a steering committee to assess the possibility of sugar imports to stabilise prices and directed the State Bank and Finance Division to present a revised home remittance incentive scheme by July 31.
The meeting was attended by Power Minister Sardar Awais Leghari, Petroleum Minister Ali Pervaiz Malik, and SAPM on Industries Haroon Akhtar Khan, among others.
