Govt hikes petrol prices by Rs22 per litre

ISLAMABAD: Hours after presenting a ‘mini-budget’, the federal government has jacked up the price of petrol by Rs22.20 per litre in a bid to appease the International Monetary Fund (IMF) for reviving $7 billion Extended Fund Facility (EFF), ARY News reported on Wednesday.

According to details, the rate of petrol has been increased to Rs272.00 per litre from Rs249.80 per litre. The new prices will come into effect from 12am tonight, a press release from the Finance Division read.

Govt of Pakiatan has decided to revise the existing prices of petroleum products, effective from 16 Feb,2023. pic.twitter.com/fWeUy1Xa41

— Ministry of Finance (@FinMinistryPak) February 15, 2023

The statement said that the price of petrol was increased to Rs272 per litre after an increase of Rs22, pointed out that the surge has taken place due to the rupee’s devaluation against the dollar.

Meanwhile, the price of high-speed diesel (HSD) has been increased by Rs17.20 per litre to Rs280.00. The price of kerosene has been increased by Rs12.30, after which the new price of kerosene oil has become Rs202.73 per litre. Similarly, the price of light diesel has been increased by Rs9.68 to Rs196.68 per litre.

Finance Bill

Earlier in the day, Federal Minister for Finance and Revenue Senator Ishaq Dar introduced the Finance (Supplementary) Bill 2023 or the “mini-budget” in the National Assembly as the coalition government rushes to fulfil the conditions of the International Monetary Fund (IMF) to secure loan programme needed to avoid a default.

Addressing the lower house of parliament, the finance minister announced to increase General Sales Tax GST rate from 17 to 18% and increasing the Federal Excise Duty (FED) on cigarettes.

Sharing the main points of the Supplementary Finance Bill, the Finance Minister said an effort has been made not to impose additional taxes on daily-used items.

He said it is suggested to increase General Sales Tax (GST) from 17 percent to 18 percent. It has been decided to enhance the GST on luxury items from 17 percent to 25 percent.

For air travel, the Minister said those travelling through First and Business Class will have to pay Federal Excise Duty of 20 percent of the airfare or 50,000 rupees or whichever is higher.

He said 10 percent withholding adjustable advance tax will be levied on the bills of wedding halls in order to promote simplicity and austerity.

The finmin further said that Federal Excise Duty (FED) was being enhanced on Cigarettes and Sugary drinks, while it is proposed to increase Federal Excise Duty on Cement from 1.5 rupees to two rupees per kilogrammes.

Pakistan, IMF inch closer

Earlier in the day, it was reported that the International Monetary Fund (IMF) and Pakistan moved closer to the revival of $7 billion Extended Fund Facility (EFF) as the lender responded to the Memorandum of Economic and Financial Policies (MEFP) draft.

The Fund has responded to the Memorandum of Economic and Financial Policies (MEFP) draft – sent by officials of Ministry of Finance and Revenue.

Sources told ARY News that IMF and finance ministry held virtual talks today, adding that the ninth review to the revival of $7 billion Extended Fund Facility (EFF) will be completed soon.

It is pertinent to mention here that virtual talks between the International Monetary Fund (IMF) and Pakistan for the completion of the ninth review of $7 billion loan programme began a day earlier.

The officials of the finance ministry would brief the IMF about the implementation of the conditions set by them for the revival of the loan program.