ISLAMABAD: The Resident Representative of the International Monetary Fund in Islamabad Esther Perez Ruiz said Pakistan has completed the last upfront action relating to the combined seventh and eighth review and raised the petroleum development levy (PDL).
In a text message sent to journalists, she, however, said that the [Executive Board] meeting is tentatively planned for late August once adequate financing assurances are confirmed.”
It may be noted here that the IMF has observed $4 billion financing gap in 2022-23 budget and the fund is seeking commitment from Pakistan to fill this gap with the support of Saudi Arabia and UAE. If both the countries authorised Pakistan to draw their quotas of loans from IMF, in case the financing gap persists, IMF board would give approval for the disbursement of loan.
From Aug 1, 2022, the rate of petrol has been reduced by Rs3.05 per litre while the prices of high-speed diesel (HSD) and kerosene have been raised by Rs8.95 and Rs4.62 per litre, respectively. The PDL was raised by Rs10 on petrol and by Rs5 each on HSD, kerosene and light diesel oil (LDO).
From Aug 1, the PDL on petrol stood at Rs20 while it was Rs10 on HSD, kerosene and LDO. The PTI government have made a commitment with the IMF in December 2021 for a Rs4 per litre increase in PDL on the first of every month to a maximum of Rs30 per litre but reversed this strategy from Feb 28, a few weeks ahead of no-trust mo.
The government had committed a prior action with the IMF to increase PDL by Rs10 per litre on HSD, kerosene oil and LDO and Rs5 per litre on petrol to ensure a uniform rate of Rs15 per litre on all products at the start of August.
As of July 31, PDL stood at Rs10 per litre on petrol and Rs5 each on HSD, kerosene and LDO.
Under the deal with the IMF, the government has to gradually increase PDL on oil products to a maximum of Rs50 per litre to collect Rs855 billion during the current fiscal year.
