Pakistan in bailout bid sharply raises natural gas taxes
Cash-strapped Pakistan sharply increased taxes on natural gas to comply with a long-stalled financial bailout, and both industrial and everyday consumers were expected to feel the pain
ISLAMABAD (AP) — Cash-strapped Pakistan sharply increased taxes on natural gas Tuesday to comply with a long-stalled financial bailout, and both industrial and everyday consumers were expected to feel the pain.
The government's bid to revive a $6 billion bailout from the International Monetary Fund led it to hike taxes on natural gas for domestic and industrial consumers from 16% to 112%, shocking many Pakistanis who already are struggling. A similar increase in the price of electricity is expected to be announced this week.
“The prices of cooking oil and all food items have doubled in the past less than one year, but there has not been any increase in our income,” said Zameen Gul, 32, a father of three who works for a construction company in Peshawar. “I don’t know how we are going to survive.”
Pakistan is struggling with instability stemming from an economic crisis, last summer's devastating floods and a recent surge in violence. A critical $1.2 billion portion of the 2019 bailout has been stalled since December, with the IMF urging Pakistan to raise more cash.
