ISLAMABAD, August 18(ABC): The government has assured the International Monetary Fund (IMF) it will increase the petroleum levy to Rs50 per litre in the Letter of Intent (LoI) sent back ahead of the Fund’s board meeting on August 29.
Pakistan sent back its LoI after the document was signed by Minister for Finance Miftah Ismail and Governor State Bank of Pakistan Dr Murtaza Syed. They gave a written commitment that the petroleum levy would further go up by Rs10 per litre in September (next month).
The government is also set to present a mini budget through the promulgation of an ordinance in order to bridge the fiscal gap that occurred after waiving off different tax incentives offered to powerful lobbies such as traders, bankers and others.
With the approval of combined reviews, Pakistan will be able to draw $1.17 billion tranche under the Extended Fund Facility (EFF).
The government has also made a request to the IMF’s Board to augment the EFF size with an additional $1 billion, increasing it from $6 to $7 billion as well as its time-frame from September 2022 to June 2023. After getting the next tranche of $1.17 billion, Pakistan would obtain $4 billion from the ongoing EFF programme.