IMF bailout bid: Pakistan raises tax on natural gas from 16% to 112%

US seeks partnership with Pakistan on counter terrorism, State Department said, underlining that it looks forward to efforts to eliminate regional and global terrorists and other security threats

Cash-strapped Pakistan on Tuesday 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 per cent to 112 per cent, shocking many Pakistanis who already are struggling. The government is also preparing to impose additional taxes, slash subsidies on electricity, and more to meet IMF terms. The country will also reverse a long-held strategy to import more fuels including LNG and attempt to boost domestic energy sources.   

Meanwhile, the US seeks a strong partnership with Pakistan on counter terrorism, the State Department said, underlining that it looks forward to efforts to eliminate regional and global terrorists and other security threats.