Petrol levy likely to increase to Rs100 amid IMF negotiations

ISLAMABAD: The budget talks between Pakistan and the International Monetary Fund (IMF) are likely to be extended by another 2 days.

According to media reports, as per the schedule, the negotiations on the IMF mission’s budget were to be completed today; however, most of the points have been agreed upon, and further negotiations are underway on a few points.

The IMF has recommended an 18% increase in the petroleum levy target, according to which the petroleum levy is likely to go up to Rs 100 per liter in the next fiscal year.

The IMF wants to give the provinces a target of collecting an additional Rs 430 billion in revenue, while demanding that the provinces provide a surplus of about Rs 2,000 billion to the federation.

According to reports, the FBR has set a tax collection target of Rs 15,264 billion for the next fiscal year. The FBR’s six-month target by December 2026 has been set at Rs 7,022 billion, and there is a plan to earn an additional Rs 95 billion from tax audits in the next fiscal year.

In addition, it is proposed to allocate another Rs 50 billion from the sugar, cement, tobacco, and fertilizer sectors, and the defense budget is likely to be allocated from Rs 2,564 billion to Rs 2,665 billion.

Rs 986 billion is expected to be allocated for the federal development program in the next fiscal year. The provincial development budget may increase from Rs 2.1 trillion to Rs 2.5 trillion, and interest payments may reach Rs 7.8 trillion in the next fiscal year.

A tentative agreement has been reached to increase the amount of BISP from Rs 14,500 to Rs 18,000, and the condition of increasing gas and electricity rates twice a year has been maintained.