ISLAMABAD – Petrol prices in Pakistan are expected to rise once again following recommendations from the International Monetary Fund (IMF) to impose General Sales Tax (GST) on petroleum products and increase the Petroleum Development Levy (PDL) to Rs70 per liter.
According to reports from local media, this anticipated price hike is part of ongoing discussions between Pakistan and the global lender to address the country’s fiscal challenges.
Read More: Cooking Oil and Ghee Prices Experience Significant Surge
The proposed changes come after the IMF’s approval of a $7 billion loan agreement with Pakistan. The deal stipulates that the government must implement various structural reforms, including the imposition of GST on petroleum products, which are currently exempt, and the increase in PDL. These measures could significantly affect fuel prices in the coming weeks.
IMF representatives are in Pakistan to assess the country’s economic performance for the first quarter of the current fiscal year. Experts familiar with the discussions have suggested that the current government setup, led by a coalition, may face difficulties in meeting the ambitious revenue targets set by the IMF under the new loan agreement.
