Govt jacks up levy on petrol following IMF bailout
Business
A day earlier, Pakistan secured a badly-needed $3bn short-term financial package from IMF
ISLAMABAD (Dunya News) – The federal government has decided to increase the petroleum development levy (PDL) on petrol by Rs5 to Rs55 per litre following a $3 billion staff-level agreement with the International Monetary Fund (IMF).
A day earlier, Pakistan secured a badly-needed $3 billion short-term financial package from the global lender, giving the South Asian economy a much-awaited respite as it teeters on the brink of default.
The IMF said it had reached an agreement on the deal with the Pakistani government, which will now be subject to approval by its board in July.
The new nine-month standby arrangement was struck hours before a current IMF bailout packaged expired on June 30, offering a relief to Pakistan's acute balance of payments crisis.
Following the loan deal, the government has decided to impose Rs5 per litre levy on petrol price. The Ministry of Finance said the levy will remain unchanged as Rs50 per litre for diesel.
The PDL on petrol has been imposed from the start of the new fiscal year, July 1 (today).
On Friday night, Finance Minister Ishaq Dar announced revision in petroleum prices for first fortnight of July 2023. He said the petrol price will remain unchanged while jacked up high-speed diesel price by Rs7.50 per litre.
