The International Monetary Fund (IMF) has asked Pakistan to immediately increase the prices of petroleum products in line with international market rates and avoid providing subsidies on petrol and diesel, according to local media reports.
Officials familiar with the discussions said the IMF emphasized that the government should pass on the full impact of rising fuel costs to consumers to ensure fiscal targets and budgetary commitments remain on track.
Reports added that there is a possibility the ex-refinery price of petrol could rise by as much as Rs32 per liter by March 15 if adjustments are made according to global prices.
The IMF has also instructed that the target of collecting Rs1,468 billion through the Petroleum Development Levy (PDL) by June 30 should not be compromised. In the first six months of the fiscal year, the government collected Rs822 billion through the levy, with more than 60% of the revenue recorded between July and December.
Earlier, on March 1, the government increased petrol prices by Rs8 per liter for the following fortnight. According to an official notification, the price of petrol rose from Rs258.17 to Rs266.17 per liter.
The price of high-speed diesel (HSD) was also increased by Rs5.16 per liter, bringing it to Rs280.86 per liter.
