According to Finance Minister Miftah Ismail on Wednesday, Pakistan was prepared to fulfill the final prerequisite of an increase in the levy on all petroleum products that the International Monetary Fund (IMF) had imposed for holding the board meeting to resuscitate the program.
The minister’s remarks ought to put an end to rumors that the administration would decide not to raise taxes starting in August because of the ongoing political situation.
The finance minister adhered to the pledges made to the IMF when he declared, “There is a schedule to gradually increase petroleum levy rates according to which the levy will increase further in the future.”
The foreign lender had made attending a seminar a requirement for receiving a loan to overhaul state-owned firms. The finance minister spoke there.
The seminar was paid for using the profits of a foreign loan at a time when the nation is about to default.
According to Ismail, the IMF had established the prerequisites for approval of the new budget, including an agreement with the provinces to generate cash surpluses, hike petroleum levy rates, increase power costs in July, August, and October, and boost interest rates. He stated that these requirements have been satisfied.
According to the terms of the agreement with the IMF, the government began charging Rs. 10 per liter for gasoline starting in July.
Due to the severe currency devaluation that has occurred over the previous ten days, which could fuel hyperinflation in the nation, petroleum product prices could increase significantly from August levels.
According to the State Bank of Pakistan (SBP), the rupee dropped 1.31 percent and ended the day at Rs. 236.
The IMF board meeting will happen later in August, according to the finance minister, even though he preferred that it happen sooner. On August 25, the IMF board is scheduled to convene.
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