Pakistan's Ministries Clash Over IMF Gas Supply Condition

Pakistan's finance and energy ministries are in conflict over an IMF condition to reduce gas supplies to industrial power plants. The agreement could cause a significant financial loss and was agreed upon despite reservations. The dispute highlights issues in the negotiation of the USD 7 billion IMF deal.

In Pakistan, a significant dispute has erupted between the nation's finance and energy ministries over a critical condition set by the IMF, requiring the reduction of gas supplies to industrial power plants by January. The clash exposes flaws in the negotiation process of the USD 7 billion agreement.

The Petroleum Division, representing the energy ministry, accused the finance ministry of agreeing to the condition despite reservations during negotiations, as reported by The Express Tribune. They argue that abrupt disconnections could lead to a Rs 427-billion loss, affecting both the government and industries.

Conversely, the finance ministry contends that the Petroleum Division was aware and accepted the terms during negotiations with the IMF. The situation is exacerbated by the energy ministry's estimation that the transition from gas to electricity for industries would necessitate about two years, highlighting a lack of foresight by Pakistani authorities before the condition was accepted.

(With inputs from agencies.)