• Wednesday, May 29, 2024

News

Pakistan urges IMF to reduce petroleum levy 

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By: Swati Rana

PAKISTAN has urged the International Monetary Fund (IMF) to keep the petroleum levy in the range of Rs450-500 billion ( £238-264 bn) against Rs600 bn (£317 bn) that has been set by the IMF.

The IMF wants Pakistan to fetch Rs600bn ((£317 bn) under the petroleum levy head. Hence, it requires the government to keep the levy at Rs30 (£0.16) per litre on petrol and diesel and other POL products for the whole financial year, The News reported.

The report states that the government wants to find a middle way with the IMF to keep the petroleum levy in the range of Rs450-500bn (£238-264 bn).

On the other hand, Islamabad has given assurances to the IMF of generating additional revenue through Non-Tax Revenues (NTR) as spectrum auction would bring in Rs155 bn (£ 82 bn) the next budget against Rs27 bn (£14 bn) estimated for the outgoing fiscal year, the Geo TV reported.

The government is struggling with the POL prices to bridge the gap of $8.4 (£6.9) per barrel and then increase the petroleum levy, starting from July 1, 2021.

“Our discussions are underway with the IMF and we will try to keep the petroleum levy low as much as possible but a lot will depend upon trends prevailing in the international market. If the POL prices decreased in international market, then it will provide cushion to hike the petroleum levy but if it increased, then it will become difficult to pass on the whole burden,” said official sources, who spoke to The News on condition of anonymity.

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