ISLAMABAD – Gas prices are slated to rise sharply in the upcoming Federal Budget 2025-26 as the government is tapping all possible sectors to rake in revenue.
Sources familiar with the development said Electricity tariffs are likely to climb by Rs7.12 per unit starting July 1, 2025, due to power sector’s circular debt reaching Rs2.396 trillion. Also, 10percent debt service surcharge (DSS) is anticipated to be added to monthly electricity bills, to be collected over the next six years.
To manage repayments, the government plans to borrow Rs1.252 trillion from banks. The gas sector’s circular debt has also soared to Rs2.85 trillion, prompting a proposed hike of Rs116.90 per MMBTU in gas tariffs from July 1, 2025, with another increase scheduled for February 15, 2026.
As per proposal, uniform gas tariff will be implemented in several regions; however, consumers are unlikely to benefit from any decrease in Sui Southern Gas Company (SSGC) tariffs.
Under pressure from International Monetary Fund (IMF), Pakistani government is considering several new tax measures, including introduction of an agricultural income tax for first time. Digital earnings through freelancing or other online platforms, especially foreign earnings, will also be taxed.
Despite fiscal tightening, Budget includes certain relief measures for salaried individuals. Government employees are set to receive a 10pc salary increase, while pensions for retired civil servants will rise by 5pc to 7.5pc.
List of actions likely to be taken against non-filers in Budget 2025-26
