The International Monetary Fund (IMF) in another do more demand has postponed its scheduled talks with Pakistan to review the loan program until the imposition of sales tax on petroleum products. According to sources, the meeting that was scheduled to take place on November 3, is now said to be held in the third week of November.
Recently, the IMF assured that it will help Pakistan as the devastating floods in the country have badly damaged the infrastructure and caused loss of billions of dollars, but another demand of “do more” from the IMF, shows that the visit of Ishaq Dar to the US failed and claims of govt of getting relief from the IMF were false.
Following the demand of the IMF, the federal government has approved an increase in the petroleum development levy.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) at the Finance Division, on Friday.
The FBR presented a summary of the increase in the rate of sales tax on HOBC. It was conveyed that the rates of sales tax on POL products were reduced to zero from February 1, 2022, which put pressure on FBR’s efforts to achieve its revenue targets. Consequently, the ECC has decided to raise the petroleum levy from Rs30 to Rs50 per litre on RON 95 and above with effect from November 16, 2022, which is a luxury item being consumed by wealthy consumers in their expensive vehicles.
The ECC also approved Technical Supplementary Grants of Rs5 billion for the conduct of the 7th population census.
The Ministry of Energy (Petroleum Division) submitted a summary on High-Speed Diesel/ Gas oil premiums and informed that due to the difference in premium on import of HSD for importing oil marketing companies (OMCs) and PSO, there is an unsustainable position for importing OMCs and smooth supply of HSD in the country.
Under the agreement with the IMF, the government has to fetch a revenue of Rs850 billion during the current fiscal by jacking the Petroleum Levy up to Rs50 per litre on petrol and diesel.
The people of Pakistan, who are already bearing the burden of the worst inflation, will be affected more by the recent demand of the IMF, government should convince the IMF that jacking up fuel prices will create more problems for Pakistan and its people.
