Pakistan aims to save $1.45 billion with new gas tariff hike ahead of IMF review

Pakistan's caretaker Energy Minister Muhammad Ali (center) is pictured during a press conference in Islamabad, Pakistan, on September 6, 2023. (PID/File)
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Updated 31 October 2023
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Pakistan aims to save $1.45 billion with new gas tariff hike ahead of IMF review

  • The interim energy minister says the decision will help deal with the growing circular debt in the country
  • The new tariffs will not affect 57 percent domestic consumers who will only pay increased fixed charges

ISLAMABAD: Caretaker Energy Minister Muhammad Ali defended the government’s decision to hike gas tariffs in the country on Tuesday, saying it would save Pakistan Rs400 billion ($1.45 billion) and alleviate its circular debt.

Last week, the Economic Coordination Committee (ECC) of the federal cabinet approved the increase in gas prices at a meeting chaired by Finance Minister Dr. Shamshad Akhtar.

It was widely reported that the decision would impact the lives of millions across the country, though the energy minister said the government had taken the decision in a way that it would not burden the financially vulnerable segments of society.

“If we had not increased the gas prices, the country would have continued to incur a loss of Rs400 billion,” he said.

“If the country had progressively increased these prices in the past, we would not have raised these rates so much,” he continued.

The minister said the new tariffs would not affect the protected 57 percent category of domestic consumers since the government had only increased their fixed monthly charges from Rs10 to Rs400.

He noted that Pakistan had witnessed a depletion in its gas reserves in the last decade, adding the country had also failed to discover new reserves during this period since it was spending a huge amount on energy imports and dealing with the circular debt.

Ali maintained the recent price increase would allow the government to invest in gas exploration and improve the overall economic situation of the country.

The hike in gas tariffs come at a time when Pakistan is bracing for the first review of a $3 billion short-term financing facility it availed from the International Monetary Fund (IMF) to stave off a looming default in July this year.

The Fund’s team is expected to visit the country to carry out the review during the course of this week.


Nearly 25% of Pakistan’s primary schools enrolling girls operate as single-teacher ones— report

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Nearly 25% of Pakistan’s primary schools enrolling girls operate as single-teacher ones— report

  • Pakistan needs over 115,000 more teachers in primary schools enrolling girls to meet global benchmark of one teacher per 30 students, says report
  • Sixty percent of Pakistani primary schools enrolling girls are overcrowded, while 32% lack clean drinking water or toilets, says Tabadlab report

ISLAMABAD: Nearly 25% of Pakistan’s primary schools that enrolls girls operate as single-teacher ones, a report by a leading think tank said this week, calling on the government to devolve teacher recruitment powers, upskill underutilized teachers and introduce reforms to hire and promote faculty members. 

Pakistan faces an acute education crisis which is reflected in the fact that it has the world’s second-highest number of out-of-school children, an estimated 22.8 million aged 5-16 who are not in educational institutions, according to UNICEF. 

While poverty remains the biggest factor keeping children out of classrooms, Pakistan’s education crisis is exacerbated by inadequate infrastructure and underqualified teachers, cultural barriers and the impacts of frequently occurring natural disasters. 

According to “The Missing Ustaani,” a report published by Islamabad-based think tank Tabadlab and supported by Malala Fund and the Pakistan Institute of Education (PIE), Pakistan needs over 115,000 more teachers in primary schools with girls’ enrolment to meet the basic international benchmark of ensuring one teacher per 30 children. Currently, the average Student-to-Teacher Ratio (STR) across Pakistan’s primary schools with girls’ enrolment is 39:1, it said. 

“Approximately 60% of these schools are overcrowded, necessitating the recruitment of over 115,000 additional teachers nationwide,” the report said on Monday. “Compounding this, nearly 25% of primary schools with girls’ enrolment operate as single-teacher schools, placing immense pressure on the quality of education.”

It said the situation is more dire in Pakistan’s poverty-stricken southwestern Balochistan province, where nearly 52% of the schools are single-teacher only ones while the percentage decreases slightly in the southern Sindh province to 51 percent. 

The report said while the STR improves to 25:1 at the middle school level, acute shortages of subject specialists emerge as the top-priority concern for quality education in these schools.

“Furthermore, around 32% of primary schools with girls’ enrolment and 18% of middle schools face ‘critical infrastructural shortages’— lacking clean drinking water or toilets in addition to high STRs— which significantly affects girls’ attendance and learning, particularly during adolescence,” the report said. 

The report cited a set of priority recommendations to address Pakistan’s systemic teacher deployment challenges and improve educational equity for girls. 

It urged the government to devolve recruitment authority to school or cluster levels to enable timely, context-specific hiring. It also called upon authorities to reform teacher transfer and promotion policies to introduce school-specific postings with minimum service terms. 

This, it said, would reduce arbitrary transfers and improving continuity in classrooms. The report advised authorities to upskill surplus or underutilized primary teachers to support instruction at the middle school level, helping address subject-specialist shortages.

“Together, these reforms offer a pathway toward a more equitable, efficient, and responsive teaching workforce— one capable of improving learning outcomes and ensuring that every girl in Pakistan has access to a qualified teacher,” the report said. 

To tackle Pakistan’s education crisis, Prime Minister Shehbaz Sharif declared an ‘education emeregency’ in September 2024, stressing the importance of education for all.