Finance Minister Miftah Ismail has said that the petroleum levy would increase in the future according to the schedule of International Monetary Fund for gradually raising taxes.
The statement of the finance minister has put speculations to an end that the government would not increase taxes from August as it had plunged into a political crisis.
Miftah Ismail was speaking at a seminar that was organized under the condition of the International Monetary Fund (IMF) for reforming state-owned enterprises in order to qualify for loans.
According to reports, at a time when the country was on the brink of default, the seminar was funded through foreign loan proceeds.
The finance minister said that the conditions of IMF that have been met include approval of a budget, cash surplus memorandum of understanding with the provinces, raising petroleum levy rates and increasing electricity prices in July, August and October.
The petroleum levy was to be gradually increased to Rs50 per litre under the IMF deal. The government had imposed a Rs10 levy in July that will have to be increased again by Rs10 on August 1.
According to the finance minister, the IMF board meeting is expected on August 25 for the final release of the loan tranche. He said that formation of a team of experts for effective anti-corruption laws was also a benchmark and the team would also determine whether the laws were used against political opponents in the past.
He blamed the former Pakistan Tehreek-i-Insaaf (PTI) government for being the cause of the delay in signing the cheapest LNG deals for fear of being chased by the National Accountability Bureau (NAB). He added that a team consisting of Pakistani and World experts would be constituted to review the laws.
Miftah told that Pakistan was in talks with a friendly country to purchase Pakistani companies’ shares listed on the stock market. He further added that minority stakes with buy-back options would be sold.
According to the finance minister, the size of the deal had been estimated at around $2-2.5 billion. He also hinted at the chances of lifting a ban on the import of luxury items including pet food in few weeks.
According to the finance minister, during the current month, the condition about vetting letters of credits for imports had helped in the reduction of import bills. He also told that the imports remaining at $4.4 billion would take the pressure off the rupee from the next month.
