Pakistan, May 13 -- The government has decided to phase out the Rs140 billion cross-subsidy currently provided to gas consumers as part of its economic reform commitments linked to the International Monetary Fund programme.

According to officials from Pakistan's Petroleum Division, the government has assured the International Monetary Fund that the subsidy mechanism will be fully eliminated by January 2027.

Under the existing system, protected and some non-protected gas consumers receive natural gas at subsidised rates, while the financial burden is transferred to industries, commercial users, CNG stations, cement manufacturers and higher-consuming domestic households.

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