The federal government has assured the International Monetary Fund (IMF) that it will increase the levy on petroleum products in the next financial year (FY25).

Sources told ProPakistani that the targeted levy on petroleum products is set to rise substantially to Rs. 1,065 billion.

Finance Ministry sources said the previously agreed levy target of Rs. 869 billion could likely be revised upwards to Rs. 918 billion in the current financial year (FY24), with this year’s collection poised to surpass the current target.

To achieve the revised target of Rs. 918 billion, sources said it is imperative to boost the consumption of petroleum products during the remaining period of FY24.

The IMF has urged the government to raise the levy for FY24. Sources remarked that as part of the Memorandum of Economic and Financial Program (MEFP) draft, both sides are in favor of elevating the levy target.

Looking ahead, there are indications that the levy on petroleum products per liter may witness an increase in FY25 The Ministry of Finance is expected to work in conjunction with the IMF to implement these changes, aligning with the shared goals outlined in the MEFP draft.

SOURCE: PRO PAKISTANI