Pakistan’s Most Significant Gas Pricing Reform in Years: Uniform Tariff Replaces 12-Slab System as Government Unveils Rs 162 Billion Targeted Subsidy Plan
Pakistan’s federal government has proposed a sweeping overhaul of its gas pricing structure, introducing a uniform tariff of Rs 1,708 per MMBTU to replace the existing 12-slab billing system, according to reports by Dawn and Business Recorder. TRESMARK
Alongside the tariff reform, the government has unveiled a Rs 162 billion targeted subsidy plan designed to shield low-income households from the impact of the flat rate.
The current multi-slab system, while designed to offer lower rates to smaller consumers, has contributed to significant complexity in billing and deepened circular debt in Pakistan’s energy sector.
The proposed uniform tariff aims to simplify the structure, improve revenue collection, and reduce the financial strain on gas distribution companies.
Analysts describe the reform as potentially one of the most consequential changes in Pakistan’s gas pricing history. Officials maintain that the targeted subsidy will preserve affordability for vulnerable households who previously benefited from the lowest slabs, ensuring the reform balances fiscal sustainability with social protection.
Implementation details and a formal rollout timeline are expected in subsequent government announcements. Check out our previous article regarding policy changes and implementations in Pakistan, here.
