In order to meet one of the demands of the International Monetary Fund (IMF), the government has increased levy on petrol by Rs5 per litre, reported 24NewsHD TV channel on Saturday.

Quoting its sources, the TV channel reported that the levy which was previously Rs50 per liter had now increased to Rs55 per liter.  

The sources disclosed that no increase had been made in development levy on the high speed diesel (HSD) as the government would continue to collect Rs50 per liter in levy on the HSD.  

Right now no sales tax is being received either on petrol or the high speed diesel.

It was after strenuous efforts spreading over several months that Pakistan finally managed to clinch a deal with the IMF yesterday.   

The 24News TV channel reported that the government’s efforts had finally paid off as Pakistan and IMF reached the Staff-Level Agreement on a $3 billion Stand-By Arrangement (SBA).

According to the announcement made by the International Monetary Fund, Pakistan will receive $3 billion under the 9-month Stand-By Agreement.

The agreement will bring economic stability in Pakistan and will protect it from external economic problems. The agreement will enable the country to receive financing from foreign countries and financial institutions.

According to the IMF press release dated June 29, the global lender said that its staff and the Pakistani authorities had reached a staff-level agreement on policies to be supported by a Stand-By Arrangement (SBA). The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.

The press release further states: “The new SBA will support the authorities’ immediate efforts to stabilize the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners. The new SBA will also create space for social and development spending through improved domestic revenue mobilization and careful spending execution to help address the needs of the Pakistani people.”

Hours after striking deal with the IMF, Finance Minister Ishaq Dar had announced the government’s decision to maintain the status quo on the petrol price but the diesel price was increased by Rs7.50 per liter for the next fortnight. “There has been no increase in the price of petrol,” said Dar in a late-night news conference. However, he added that the diesel price has been increased by Rs7.50 per liter.

Reporter: Waqas Azeem