Tag: IMF

Govt Seeks IMF Nod to Impose GST on Petroleum Amid \$6bn Refinery Investment Deadlock

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New-IMF

ISLAMABAD: The Special Investment Facilitation Council (SIFC) has directed the Ministry of Finance to urgently obtain approval from the International Monetary Fund (IMF) for the imposition of General Sales Tax (GST) on petroleum products — a key measure tied to unlocking \$6 billion in refinery upgrade investments. Despite earlier commitments, the proposed 5% GST on petroleum was not included in the Finance Bill 2025, raising alarms in the oil industry and stalling long-term planning under the Pakistan Oil Refining Policy for Upgradation of Existing Refineries (2023). Industry stakeholders, particularly the…

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Energy ministry seeks cabinet nod for fuel levies in line with IMF commitments

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Petroleum Division

The Ministry of Energy (Petroleum Division) has proposed amendments to the Petroleum Products (Petroleum Levy) Ordinance, 1961, to introduce new levies on fuel, specifically Carbon Levy and Petroleum Levy (PL) on furnace oil, petrol, and diesel. As per the summary prepared by the ministry for the consideration of the cabinet, under the ongoing International Monetary Fund (IMF) programme for Resilience and Sustainability Financing (RSF), the government has agreed for imposition of Carbon Levy on petrol, diesel and furnace oil along with imposition of Petroleum Levy (PL) on furnace oil. “This…

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IMF Pressure Forces Govt to Hike Gas Tariffs from July 1 to Curb Utility Deficits

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Gas-IMF

ISLAMABAD: Facing mounting pressure from the International Monetary Fund (IMF), the government has no choice but to raise gas sale prices from July 1, in line with conditions to eliminate deficits in the country’s gas utilities. Under the IMF-endorsed 2022 amendment, gas tariffs must be revised annually to ensure zero fiscal shortfall for Sui companies. As a result, a gas price hike is now imminent to address the Rs 40 billion deficit faced by Sui Northern Gas Pipelines Limited (SNGPL), according to a senior official in the Ministry of Energy.…

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IMF Yet to Approve Pakistan’s Budget Relief Proposals Amid Revenue Concerns

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pak-imf

ISLAMABAD: The International Monetary Fund (IMF) has not yet taken a final stance on Pakistan’s request for budgetary relief, as it continues to push for concrete steps to broaden the tax base—particularly in agriculture income and the retail sector. Government officials, under the direction of Prime Minister Shehbaz Sharif, have held extensive discussions with the IMF mission since May 14. A key relief proposal includes a 2.5% across-the-board reduction in income tax rates for salaried individuals. However, the IMF’s approval hinges on Pakistan’s ability to meet the programme’s target of…

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Fuel, Electricity, and Gas Prices Set to Rise as Pakistan Aligns with IMF Reforms

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New-IMF

KARACHI: Pakistan is set to increase fuel, electricity, and gas prices from July 1, 2025, as part of a broader package of economic reforms agreed with the International Monetary Fund (IMF) ahead of the upcoming federal budget, officials confirmed. The reform measures, aimed at reducing the fiscal deficit and curbing the ballooning circular debt in the energy sector, include new levies and tariff adjustments. These steps are expected to significantly impact household and industrial consumers across the country. Key changes include the introduction of a Rs5 per litre carbon levy…

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