IMF demands completion of petroleum levy target, urges to increase petrol and diesel prices

Important consultations are underway between Pakistan and the International Monetary Fund (IMF) regarding the prices of petroleum products and tax policy during the ongoing economic program.
According to sources, the IMF has suggested to the Pakistani government that no subsidy should be provided on petrol and diesel and that the increase in prices in the global market should be immediately passed on to the local level.
According to reports, the international financial institution is emphasizing on maintaining fiscal discipline in the energy sector. In this regard, officials say that pricing should be determined according to the global market so that the government’s financial burden can be reduced.
According to sources, the IMF has also reminded the government that the revenue generated from the Petroleum Development Levy is playing an important role in the budget of the current fiscal year.
The government has set a target of collecting Rs 1468 billion in petroleum levy by June 30. IMF officials say that this target must be met at all costs so that fiscal discipline is maintained.
According to economists, petroleum levy has become a major revenue source for the government. The income generated from it helps in reducing the budget deficit and providing resources for development projects.
On the other hand, oil prices in the global market continue to fluctuate. If global prices increase, it also has a direct impact on countries like Pakistan that depend on imported fuel.
According to economic circles, Pakistan imports a large part of its energy requirements. That is why changes in the global oil market also affect the local economy.
Experts say that if the government maintains the prices of petroleum products in line with global prices, it can help improve fiscal discipline, however, alternative measures may also be necessary for public relief.
According to government sources, consultations are underway with the IMF regarding energy policy and financial reforms and further progress is expected in this regard in the coming days.