Pakistan has failed to meet a July 1 deadline for notifying semi-annual gas tariff adjustments, breaching a structural benchmark under its $7 billion Extended Fund Facility (EFF) with the International Monetary Fund.
The government had committed to implementing these adjustments on July 1, 2026, and February 15, 2027, to ensure energy tariffs remain at cost-recovery levels.
Officials attribute the delay to legal complications surrounding the appointment of the chief of the Oil and Gas Regulatory Authority (Ogra) and unresolved targets for the state-owned upstream firm, Upstream Field Services (UFG).
These administrative hurdles have stalled the regulatory process required to formalize the tariff changes.
The missed deadline underscores ongoing challenges in Pakistan’s energy sector governance and its ability to meet IMF program conditions.
Failure to adhere to structural benchmarks can jeopardize the disbursement of subsequent EFF tranches, potentially tightening fiscal space and increasing pressure on the country’s external accounts.