Brace yourself Pakistan, petroleum prices to increase in August


ISLAMABAD: Amid the conditions laid by the International Monetary Fund (IMF), Finance Minister Miftah Ismail has announced an increase in the petroleum levy. The increment will be applied by August.

Addressing a seminar, Miftah said that petroleum levy rates would gradually increase under a schedule. Earlier, there were speculations that PML-N-led government might not raise the taxes in August. But finance minister seems to strictly follow the agreement with IMF.

Miftah added that Pakistan had met other conditions by IMF, which included an agreement with provinces for cash surplus, approving the new fiscal budget, increasing petroleum levy and electricity prices, and jacking up the interest rates.

Under the agreement, Pakistan would hike the per litre levy gradually to Rs50 per litre. By August 1, 2022, Rs10 would be increased in petroleum levy.

Economic analysts forecast hyperinflation in Pakistan due to the historic devaluation of the local currency. It is anticipated that petrol prices will touch an all-time high in August. The next meeting of Pakistan and the IMF is likely to take place on August 25, 2022.

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