Pakistan likely to increase petrol prices further by Rs30 per litre to unlock IMF funding

ISLAMABAD – The federal government is likely to increase prices of petrol and diesel by Rs30 per litre amid ongoing talks with IMF over a bailout package.

Reports in local media suggest that another hike is expected as a cash-strapped country decided to impose a general sale tax (GST) on petroleum products as an additional measure. The lender has asked Islamabad to increase electricity and gas tariffs and to impose general sales tax (GST) along with the privatisation of several state-owned enterprises.

The mission also asked the coalition government to ensure an audit of several state departments besides easing the tax provision culture.

As of now, petrol is being sold at Rs249.80 per liter; high-speed diesel at Rs262.80 per liter; kerosene oil at Rs189.83 per liter; and light-speed diesel is Rs187 per liter, and after the imposition of GST, the price of a basic commodity will hit Rs280 per litre.

It also worried distressed citizens as the government dropped a petrol bomb last month, increasing the prices of petroleum products up to Rs35 per litre.

The lender asked the cash-strapped country to fulfill vows to introduce new taxes in order to revive the $6.5 billion bailout package at times when the country’s forex reserves drop again to an alarming $3.1 billion.

IMF wants assets of Pakistani officers of grade 17-22 be made public: reports

Amid the worst crisis, inflation skyrocketed to a 14-week high at 2.83 percent week-on-week during the 7-day period, per reports.