ISLAMABAD – The government has decided to increase the petroleum development levy (PDL) on petrol by Rs5, taking it from Rs50 to Rs55 per litre, following a much-needed $3 billion loan agreement with the International Monetary Fund (IMF) a day earlier.
The PDL on petrol has come into effect from today, July 1, reports said, adding that there would be no change in the development levy on high-speed diesel (HSD), which currently stands at Rs50 per litre.
HSD prices increased by PKR 7.50/liter (+3.0%) to PKR 260.50/liter. PDL and sales tax on HSD also remained unchanged at PKR 50.00/liter and zero, respectively.@GovtofPakistan @Official_PetDiv#Pakistan #Economy #AHL #PetrolPrice pic.twitter.com/C3ZlhD81iQ
— Arif Habib Limited (@ArifHabibLtd) July 1, 2023
A day earlier, Finance Minister Ishaq Dar announced Rs7.5 per litre increase in price of high-speed diesel for the next fortnight; however, the petrol price was kept unchanged.
Reports said the government had sought powers to amendment the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961) in the Fifth Schedule, in column (1) through the Finance Act 2023-24, which authorizes it to increase the petroleum levy.
Earlier, the government had to seek approval of parliament to fix the maximum limit of petroleum levy.
On Friday, the IMF reached a staff-level agreement with the Pakistani authorities on a nine-month Stand-by Arrangement (SBA) in the amount of $3 billion.
“The new SBA builds on the authorities’ efforts under Pakistan’s 2019 EFF-supported program which expires end-June. This agreement is subject to approval by the IMF’s Executive Board, which is expected to consider this request by mid-July,” the global lender said in its press release.
Islamabad had been scrambling to complete the ninth review to unlock at least $1.1 billion under the lender’s $6.5-billion Extended Fund Facility agreed in 2019 for several months. The programme was set to expire on June 30 (Friday).
https://en.dailypakistan.com.pk/30-Jun-2023/imf-reaches-staff-level-agreement-with-pakistan-on-dollar-3-billion-loan-tranche
