ISLAMABAD: Finance Minister Miftah Ismail said that the government would further further increase the levy on all petroleum products to meet the International Monetary Fund (IMF) upfront condition as IMF board is expected to meet on 25th of August to consider approval of loan for Pakistan.
Under the deal with the IMF, the government had already levied Rs10 per litre levy on petrol from July. It will be raised by another Rs10 on August 1 until it reaches Rs50 per litre. Miftah’s statement sets aside speculations that the government was not increasing taxes from August due to political crisis.
Finance Minister said, “There is a schedule to gradually increase petroleum levy rates according to which the levy will increase further in the future.”
Miftah was speaking at a seminar that was organised under a condition of the IMF to qualify for the loan to reform the state-owned enterprises.
Finance Minister said that the IMF had set the prior conditions of approval of the new budget _ an MoU with the provinces to create cash surplus, increase petroleum levy, electricity prices in July, August, October and hike in interest rates. Miftah said these conditions have been met.
The petroleum products prices may significantly go up from August due to massive currency devaluation during the past 10 days, which could stoke hyperinflation in the country. On Thursday (July 28), dollar closed above 240 rupees in the inter-bank while in the open market, dollar-rupee parity was fluctuating much beyond this price level.
The finance minister said that the IMF board meeting would take place later in August, although he wanted the meeting to be held in early August. The IMF board is expected to meet on August 25th.
