Pakistan in bailout bid sharply raises natural gas taxes

By MUIR AHMED and RIAZ KHAN
Associated Press

ISLAMABAD (AP) — 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. 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. 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.