International Monetary Fund (IMF) has insisted that the government increasethe petroleum levy for the loan program’s restoration, finance ministerMiftah Ismail told the media.
The government will increase the levy gradually to ease its impact on thepeople, Miftah said during a seminar. “There is a schedule to graduallyincrease petroleum levy rates according to which the levy will increasefurther in the future,” he highlighted.
Speculations had previously suggested that the government might not enact alevy hike next month. However, the finance minister’s recent statementscontradict these speculations.
IMF’s conditions for program restoration include petroleum levy hikes,electricity price hikes, and the signing of MoUs between the federal andprovincial governments to create cash surpluses.
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The government has already increased the petroleum levy by Rs. 10 per literthis month and is expected to gradually increase it further until itreaches Rs. 50 per liter.
These steps, along with the continued local currency devaluation maysignificantly drive up petrol prices in Pakistan, which would impact thecosts of various commodities and services.link
