Pakistan has failed to meet a critical July 1 deadline to notify semi-annual gas tariff adjustments, breaching a structural benchmark under its $7 billion Extended Fund Facility (EFF) with the International Monetary Fund.
The missed target is part of a commitment to maintain energy tariffs at cost-recovery levels, with the next scheduled notification due on February 15, 2027.
Government officials attribute the delay to legal complications surrounding the appointment of the chief of the Oil and Gas Regulatory Authority (OGRA), as well as unresolved targets regarding the Utility Finance Group (UFG).
These administrative and legal hurdles have stalled the regulatory process required to implement the tariff changes.
The breach adds to the mounting compliance risks for Pakistan's IMF program, which has faced repeated delays and restructuring in recent years.
Failure to adhere to structural benchmarks can jeopardize the disbursement of further tranches, tightening an already constrained fiscal environment.