Pakistan has completed the last prior action that was required for the combined seventh and eighth review of International Monetary Fund (IMF) by raising the petroleum development levy (PDY).
The IMF’s Resident Representative in Islamabad Esther Perez Ruiz has said that with the increase in petroleum development levy (PDL), Pakistan has met the last action. She also said that after assurance of adequate financing, the meeting of the executive board of IMF would be held in late August.
The federal government had increased rate of PDL to meet-up with the condition of IMF. A raise of Rs10 on petrol and Rs5 each on high speed diesel, kerosene and light diesel oil was approved.
Earlier, the previous PTI government had assured the IMF in December 2021 of increasing the PDL to a maximum of Rs30 per liter but reversed it on February 28.
Under the current IMF deal, the government will have to increase gradually the PDL to a maximum of Rs50 per liter. This would help the government to collect Rs855 billion in the ongoing financial year.
According to media reports, IMF is expected to start the process of releasing loan tranche later this week. The summer recess at IMF would end on August 12 therefore the IMF Executive Board meeting has been expected before August 20, provided the board receives the recommendations by August 6.