The government on Saturday decided to increase the Petroleum Development Levy (PDL) on petrol from Rs 50 to Rs 55 per liter following a $3 billion staff-level agreement with the International Monetary Fund (IMF). What is it.
The PDL on petrol has been implemented from the beginning of the new financial year i.e. July 1 (today).
Additionally, the ministry said there will be no increase in the development levy on high-speed diesel (HSD), which is Rs 50 per litre.
A day ago, Finance Minister Ishaq Dar announced that diesel prices have been increased by Rs 7.50 for the next fortnight. However, he said that petrol prices will remain the same.
In a late night press conference, Dar said that there has been no increase in the price of petrol.
The finance czar also said that the new diesel price will be effective from July 1.
According to JEE News, the government sought powers to amend the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961) in column (1) of the Fifth Schedule through the Finance Act 2023-24, which empowers it. Increase in petroleum levy.
Earlier, Parliament’s approval was required to set the maximum limit for petroleum levy.
The Finance Ministry told the Senate Standing Committee on Finance that the PDL was worked out at Rs 60 per liter to achieve a target of Rs 879 billion in the next financial year, which ends 2022-23. 542 billion against the revised target of Rs. On June 30
Pakistan, IMF sign $3 billion pact
Pakistan and the IMF on Friday reached a long-awaited Staff Level Agreement (SLA) on a $3 billion “Standby Arrangement” (SBA), the global lender announced.
“I am pleased to announce that the IMF team has signed a nine-month Standby Arrangement (SBA) with the Pakistani authorities in the amount of SDR 2,250 million (about $3 billion or 111 percent) at the staff level. agreement. IMF quota),” Nathan Porter, the IMF mission chief in Pakistan, said in a statement.
“The new SBA builds on the authorities’ efforts under Pakistan’s 2019 EFF-supported program that ends at the end of June. The agreement is subject to approval by the IMF’s Executive Board, which is expected in July. This request will be considered by the middle.
Funding of $3 billion over nine months is more than expected for Pakistan. The country was awaiting the release of the remaining $2.5 billion of the $6.5 billion bailout package scheduled for 2019, which expires on Friday (today).
The agreement came after an eight-month delay and gave some respite to Pakistan, which is struggling with a severe balance of payments crisis and dwindling foreign exchange reserves.
In a statement released today, the IMF said that since the completion of the joint seventh and eighth reviews under the 2019 EFF in August 2022, Pakistan’s economy has faced several external shocks, such as the devastating floods in 2022 that cost millions of lives. The impact on the lives of Pakistanis and the rise in international commodity prices as a result of Russia’s war in Ukraine.
As a result of these shocks and some policy mistakes – including disruptions in the functioning of the forex market – economic growth has stalled.
Inflation, including essential items, is high. Despite the authorities’ efforts to reduce imports and trade deficits, reserves have fallen to very low levels, the IMF statement said.
Additionally, he said liquidity conditions in the power sector are also dire, with revolving credit and frequent loadshedding.
The global lender said the new SBA will support Pakistan’s urgent efforts to stabilize the economy from recent external shocks, maintain macroeconomic stability and provide a framework for financing from multilateral and bilateral partners. will do
“The new SBA will also create space for social and development spending by implementing prudent spending and improving domestic revenue to help meet the needs of the Pakistani people.”
The IMF added that stable policy implementation is key to overcoming Pakistan’s current challenges, including greater fiscal discipline, market-based exchange rates to absorb external pressures, and reforms. But further developments, particularly in the energy sector, involve climate change mitigation. Flexibility, and helping to improve the business environment.
