ISLAMABAD: The coalition government has assured International Monetary Fund (IMF) that it would raise the petroleum development levy (PDL) to Rs50 per litre on petrol and diesel in 2023.
Earlier, Pakistan had submitted a Letter of Intent (LOI) to the IMF to secure formal approval for the 7th and 8th reviews of the Extended Fund Facility (EFF). LOI stated that Pakistan would arrange foreign exchange reserves to cover imports for 10 weeks. The reserves will not be used for foreign exchange support.
Further, the government also nodded to implementing the plan to increase PDL on monthly basis. From September 01, 2022, Rs10 per litre will be increased on petrol and Rs5 per litre on diesel. The increment will continue till PDL reaches Rs50 per litre. PDL on petrol will be jacked up till January and on diesel till April.
During the current fiscal year, the Ehsas Ration Riyat Programme will be discontinued, and Sasta Fuel Sasta Diesel will continue till June 2023. But through Ehsas Emergency Cash and unconditional cash transfer programmes, the BISP will be increased to Rs316 billion.
In the next few months, the Finance Ministry will work to generate Rs150 billion in revenue. On Wednesday, IMF Representative Esther Perez Ruiz confirmed that on August 29, 2022, a meeting is scheduled to take place between Pakistan and the Executive Board of IMF.