Following the directives of the International Monetary Fund (IMF), Pakistan’s Petroleum Division has implemented further revisions to the gas allocation priority order, which was initially approved by the Special Investment Facilitation Council (SIFC). According to a report by Presstonight, the latest proposals place Captive Power Plants (CPPs) at the bottom of the merit order list for gas allocation.
IMF Influence on Gas Allocation:
- Revised Priority Order: The decision to demote Captive Power Plants to the last priority, alongside CNG stations, is in direct response to the IMF’s requirements. This adjustment aligns with the conditions set by the Fund, which has been crucial in securing the ongoing loan program necessary for Pakistan’s economic stability.
- Economic Survival: The move underscores the government’s commitment to adhering to IMF policies, which are seen as essential for the country’s financial survival. The IMF’s influence on resource allocation decisions reflects the broader economic challenges facing Pakistan and the critical role of international financial support in navigating them.
These changes in gas allocation priorities highlight the significant impact of international financial institutions on national policy, particularly in sectors crucial to economic operations and industrial activity.
