ISLAMABAD: The International Monetary Fund (IMF) has the Pakistani government to implement the general sales tax (GST) on petroleum products and raise the petroleum development levy (PDL) to from Rs60 to Rs70 per liter, a proposal that, if accepted, could result in significant price hike for petrol and diesel from November 16.
The IMF delegation, led by Mission Chief Nathan Porter, met with Finance Minister Muhammad Aurangzeb during their visit to Pakistan.
State Minister for Finance Ali Pervez Malik, State Bank of Pakistan Governor Jameel Ahmad and Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial were also present during the meeting.
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The discussions centered around the ongoing $7 billion IMF loan programme and the updates on progress made so far.
Sources said that the IMF delegation proposed additional revenue measures to cover shortfalls and called for eliminating state-owned companies’ monopoly on LNG imports, allowing private sector engagement to foster a competitive market.
Minister Aurangzeb assured the IMF that economic stabilisation reforms remain a priority, affirming that most targets for the first quarter of fiscal year 2024-25 have been met, with a commitment to fully implement the programme.
Sources said that during the IMF delegation’s visit, further briefings will cover measures to downsise the size of public sector departments, including the elimination of 150,000 government posts, aimed at reducing expenditures.
Sources said that the IMF delegation will be brief on the stalled privatisation of Pakistan International Airlines (PIA), for which the IMF had set an October 31 target.
The IMF mission will remain in Pakistan until November 15 and will hold specialised sessions on increasing agricultural income taxes in meetings with provincial governments.
Discussions with provincial authorities are also planned on energy sector reforms and timely adjustments to electricity and gas rates.