Pakistan asked by IMF to further hike levy on petroleum products: Imran Khan's advisor

The International Monetary Fund (IMF) had asked Pakistan to increase the Petroleum Development Levy (PDL), Adviser to the Prime Minister Imran Khan said on Saturday, hinting that the government was likely to further raise the tax on petrol products. Defending the recent spike in the prices, Shaukat Tarin, who is Khan's Advisor on Finance said that the hike was a result of the rates in the international market. Tarin also assured that there was no 'deadlock' in talks with the IMF, and stated that the autonomy of the State Bank of Pakistan (SBP) was under negotiation and will hopefully be resolved in the coming days.

The News International quoted Pakistan's Adviser as saying, "The International Monetary Fund [IMF] has also asked to increase the petroleum development levy, [PDL] but it will depend on the global prices of petroleum products." He added that if the global price of oil goes down, "it will be easy for the government to increase the PDL."

Imran Khan bats for fuel price hike

Pakistan government is facing massive protests by the Opposition over rising fuel prices and inflation in the country. Parties such as the PPP and the Pakistan Democratic Alliance- an Opposition conglomerate, have announced demonstrations against the Imran Khan-led government.

Blocking a rise in the petroleum levy, Pakistan Muslim League (N) President and Opposition Leader in the National Assembly Shehbaz Sharif was quoted by Dawn as saying, "The government is about to increase inflation by raising the petroleum levy on the orders of IMF which is cruel. The government has also given in to the IMF's conditions for increasing electricity tariffs. The government has given the public an 'inflation package'."

Meanwhile, Imran Khan attempted to justify the record fuel rates in his country by citing India's fuel prices. Khan stated that petrol prices needed to be increased to tackle the growing debt crisis. "When you say that petrol prices have increased, it's cheaper for Pakistan. But I must tell you that we need to increase fuel prices, else our debt will increase. But if you compare this with India, they are selling petrol for (Pak Rupee) Rs 250 per litre and in Bangladesh, they are selling for Rs 200 per litre. In Pakistan, we are selling it for Rs 138 per litre," said Imran Khan.

(With Agency Inputs)