Lagatar24 Desk
Islamabad, Feb 16: Pakistan on Wednesday night hiked up the prices of petrol and gas to a historic high in a proposal to appease the International Monetary Fund (IMF) for unlocking the critical loan tranche.
Hours after unleashing a tax-loaded ‘mini-budget’, the petrol price has been increased to 272 rupees per litre after an increase of 22.20 rupees, a press release from the Finance Division read, noting that the surge has taken place caused by the rupee’s depreciation against the dollar. The price of high-speed diesel has been increased to 280 rupees per litre after a hike of 17.20 rupees. Kerosene oil will now be available at 202.73 rupees per litre following a 12.90 rupees hike. Meanwhile, light diesel oil will be available at 196.68 rupees per litre after an increase of 9.68 rupees. The new prices will come into effect from 12 am Thursday.
Notably, petroleum products was one of the preconditions of the IMF, which lead to a hike in the already record-high inflation, coupled with the new fiscal measures undertaken through the ‘mini-budget’. Inflation is expected to go up in Pakistan after the petrol hike, the ‘mini-budget’.
On Thursday, final rounds of talks between Pakistani authorities and IMF will be held to firm up the ninth review of the Extended Fund Facility (EFF). If approved then it would pave way for a $1.2 billion tranche for the country.
The Federal Board of Revenue (FBR) has issued an SRO, increasing the standard 17 per cent general sales tax (GST) to 18 per cent, for collecting taxes worth 115 billion rupees, while the remaining 55 billion rupees will be generated through other measures in connection with the Finance (Supplementary) Bill 2023 – or the ‘mini-budget,’ reported Geo News.
Through the mini-budget, the Pakistan Democratic Movement (PDM)-led federal government aims to reduce the budget deficit and broaden its tax collection net.
