Petrol price hike likely on IMF pressure - Rs107 per litre levy not enough?

The government is considering increasing taxes on petrol to improve its income. This step is also linked to meeting strict financial targets set under IMF agreements.

Sources in the Finance Ministry said petroleum levy collections are already expected to cross the annual target of Rs1,468 billion. Despite this, officials are still reviewing plans to increase the levy in coming months.

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This development comes just days after the government raised the petroleum levy by about Rs27 per litre. After this increase, the levy has already crossed Rs107 per litre.

Officials say these steps are part of a broader financial policy linked with IMF programs. The aim is to control the budget deficit and ensure economic stability.

According to sources, the IMF is pushing Pakistan to reduce subsidies and rely more on direct taxes. This includes increasing petroleum levy to maintain financial discipline.

The government has reportedly assured the IMF that it will continue strict financial policies. This indicates that more tough decisions could be taken in the near future.

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In recent months, global oil prices have shown ups and downs due to regional tensions. However, experts say most of the price increase in Pakistan is due to higher taxes rather than global rates.

This move can increase pressure on common people. Higher fuel prices affect transport and daily expenses. But it may help the government manage its financial crisis. The real challenge will be balancing relief and economic stability.