Follow Us on Google News
Petrol prices in Pakistan are feared to rise again as the International Monetary Fund (IMF) has suggested imposing a General Sales Tax (GST) on petroleum products and increasing the Petroleum Development Levy (PDL) to Rs70 per liter.
Currently, Pakistan is charging a Rs60 per liter levy, with no GST applied. If the IMF’s demands are met, petrol and diesel prices could see an increase of up to Rs.30 per liter within the next three days.
Reports in local media have indicated that this surge in fuel prices is part of ongoing negotiations with the global lender aimed at addressing the country’s fiscal challenges.
The proposed changes follow the IMF’s approval of a $7 billion loan agreement with Pakistan, which requires the government to implement a series of structural reforms. As it stands, petrol and other petroleum products are exempt from GST, but with the introduction of GST and the increase in the PDL, fuel prices could rise sharply in the weeks ahead.
IMF officials are currently in Pakistan to assess the country’s economic performance for the first quarter of the fiscal year. Experts familiar with the situation suggest that the current coalition government may struggle to meet the ambitious revenue targets set by the IMF under the loan agreement.
