The Pakistan government has steeply 💙hiked petroleum prices to implement the tough preconditions set by the International Monetary Fund (IMF) to revive the stalled USD 6 billion bailout package for 𒆙the cash-strapped country.
Prices of all petroleum products went up by about R𒉰s14-19 per litre after the decision came into effe🐭ct from midnight on Thursday.
According to a notification issued 🥃by the finance ministry, the govern𒐪ment imposed a Rs 10 per litre petroleum levy on petrol and Rs 5 each on high-speed diesel (HSD), kerosene and light diesel oil (LDO).
As a result, the per-litre price of petrol has been increa🦋sed by Rs 14.85, HSD by Rs 13.23, kerosene by Rs 18.83 and ꦡLDO by Rs 18.68.
♛The ex-depot price of petrol now stands at Rs 248.74 per litre, HSD at Rs 276.54, kerosene at Rs 230.26, and LDO at Rꦚs 226.15.
Finance Minister Miftah Ismail told the media that the petroleum levy was imposed to revive the IMF programme suspended four months ago after the previous government led by Imran Khan reneged from signed agreements.
This is the fourth hike in pꩵetroleum under the incumbent government which took power in April.
The IMF has ꧃set tough precondi🎶tions like hiking electricity tariffs and imposing a levy on petroleum products to revive the stalled bailout programme.
The IMF Fund also asked Pakistan to set up an anti-corruption task force to revꦑiew all the existing laws that were aimed at curbing graft in the government departments.
After implementing the conditions, the IMF would present Pakist🍌an’s request for the approval of the loan tranche and revival of the programme to its executive board – a process that may consume another month.
Cash-strapped Pakistan is facing growing economic challeng🗹es, with high inflation, sliding forex reserves, a widening current account deficit and a depreciating currency.
On June 22, Pakistan secured a deal wi💃th the IMF to restore the stalled USD 6 billion assistance package and un🉐lock doors for financing from other international sources.
The make-or-break deal was reached following t📖he IMF staff mission and the Pakistani team, led by Finance Minister Ismail, agreeing on an understanding on the 2022-23 budget after the authorities committed to generate Rs 43,600 crore more taxes and increase petroleum levy gradually up to Rs 50 per litre🧔, the Dawn newspaper reported.
The extended fund facility package of USD 6 billion was agreed upon in ꩲJu꧙ly 2019 for a period of 39 months. So far only half of the promised money has been reimbursed.
The revival of the facility will immediately provide access to USD 1 billion, w⛦hich Pakistan badly needs to buttre﷽ss its dwindling foreign exchange reserves.
