- Move under a new understanding with the International Monetary Fund.
- Levy is currently at RS78 per liter on petrol and RS77 on Diesel.
- All provinces are suitable not to introduce new power or gas grants.
Islamabad: Under a new understanding with the International Monetary Fund (IMF), Pakistan will increase its oil development tax (PDL) to more than RS100 per liter on petrol and diesel during the coming financial year from July 2025, The news reported.
The initiative was taken to finance subsidies from the power sector and help reduce circular debt, said a senior official The news Monday.
The levy, is currently located at RS78 per liter on petrol and RS77 on diesel, is being improved in the context of the wider Islamabad strategy aimed at stimulating non -tax and support power and subsidies to electric vehicles.
The plan is at the heart of Pakistan’s commitment to strengthen its budgetary position by virtue of the Extended Funds of the IMF (EFF), said a senior official.
The PDL has already experienced a sharp increase since July 2024 – from RS60 to RS80 per liter, more than 1 Billion of rupees in the first 10 months of the 2010 financial year. The government had targeted in the budget to collect RS1.281 Billion through the tax by the end of the year.
As part of its budgetary reforms aligned on the climate, Pakistan is also committed to introducing an RS5 by Liy de Carbon liter on petrol and diesel.
In the electricity sector, the government will remove a 10% ceiling on the debt service supplement (DSS) on electricity bills by the end of June 2025.
The move should help reduce circular hot air balloon debt. To achieve this objective, the authorities have promised regular tariff adjustments, fuel cost passages and a new circular debt management plan to be approved by the firm by July 2025.
Interestingly, all the provinces have agreed not to introduce new power or gas subsidies – strengthening efforts to the sustainability of the long -term budgetary and energy sector.
The fund said: “The appropriate implementation of power prices has helped to reduce the stock and the flow of the circular debt.” Meanwhile, the cost side reforms show signs of early success but must be accelerated to protect the viability of the energy sector and improve the competitiveness of Pakistan. »»