Pakistani govt raises gas prices, slashing consumer subsidies

Pakistan on Monday increased natural gas prices by up to 20 percent, Petroleum Minister Chaudhry Mohammad Sarwar said. The price hike is in effect slashing consumer subsidies that were a fiscal drag on the government’s budget. The decision was taken by the Economic Coordination Committee, chaired by new Prime Minister Imran Khan, who has vowed radical economic reforms, Reuters reports. Sarwar said the move would help ease part of the 152 billion rupee ($1.24 billion) deficit for state-owned Sui Northern and Sui Southern, the two main suppliers of natural gas. Pakistan has enjoyed decades of cheap gas due to its natural resources, but over the past decade those gas reserves have not been enough. The country has begun importing liquefied natural gas (LNG), which is more expensive than domestic gas.