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