The Government of Pakistan is prepared to revise the pricing of petroleum products on a weekly basis, which was among the requirements for the release of the money to Islamabad, according to sources in the Finance Ministry, as part of its efforts to revive the delayed $6 billion IMF bailout package.
Before, the government used to change the rates of petroleum products every two weeks.
According to the sources, action is being made to swiftly transfer the effects of the fluctuating oil prices to consumers.
The following federal cabinet meeting will be where a definitive choice in this matter will be made.
It is important to note that although the PTI-led administration had shortened the term to a fortnight, fuel prices were previously increased on a monthly basis across the nation.
According to a statement made on August 2 by Esther Perez Ruiz, the IMF’s resident representative in Islamabad, Pakistan has completed all prerequisites for the combined seventh and eighth evaluations for the resumption of the $6 billion loan program.
According to the deal made with the Washington-based lender, the country hiked the petroleum development levy (PDL) on July 31.
The PDL on petrol was increased by Rs. 10–20 and that on diesel by Rs. 5–10 per liter as the federal government updated the rates of petroleum products for the following two weeks beginning on August 1.
The Executive Board meeting of the Fund will take place at the end of August, according to Esther Perez Ruiz, the head of the IMF in Pakistan.
According to sources, the IMF’s approval is contingent on pledges of $4 billion in finance from Pakistan’s allies.
In light of the nation’s declining foreign exchange reserves and deteriorating economic situation, Pakistan and the IMF had earlier this month struck a staff-level agreement.
Fear of default has been prompted by the delay in the loan program’s resurrection as well as political unpredictability.
But Finance Minister MIftah Ismail repeatedly told the country that the country’s financial demands will be satisfied.
To read our blog on “Government may raise the cost of petrol and diesel by Rs. 10–17 per liter,” click here.
