ISLAMABAD: Adviser on Finance Shaukat Tarin and Energy Minister of Pakistan Hammad Azhar, in a press conference here on Monday, shared details of the staff-level agreement between Pakistan and the International Monetary Fund (IMF).
Under the agreement, Pakistan has to generate a Rs.365 billion revenue by the petroleum development levy (PDL). A monthly hike of Rs.4 in petroleum prices is announced to meet the target.
“We have to increase PDL by Rs.4 every month to take it to Rs.30,” said the finance adviser.
Other than that, Pakistan has to fulfil four requirements under the agreement, including ensuring autonomy of the State Bank of Pakistan, exemption of Rs.350bn sales tax via supplementary finance bill, Rs.700bn reduction in Public Sector Development Programme, and Covid-19 funds audit and beneficiaries declaration.
According to Tarin, the new revenue target is Rs.6.1 trillion from the previous Rs.5.8trillion. IMF showed dissatisfaction with the revenue collection despite the fact that the Federal Board of Revenue (FBR), during the starting four months of the fiscal year, made a record collection of Rs.225bn.
He added that once all the conditions of IMF are met, a loan of $1bn would be issued.