Budget 2021-22: POL Prices Are Likely To Increase In Coming Months


Budget 2021-22: POL prices are likely to increase in coming months

Finance Minister Shaukat Tarin says talks with IMF continue over stabilizatiion of revenue collection

ISLAMABAD: (UrduPoint/Pakistan Point News-June 12nd, 2021) The prices of the petroluem products were likely to be increased amid talks with International Monetary Fund (IMF) over stablization of revenue collection.

“The petroluem levy will be increased up to Rs 600 billion in the coming fiscal year,” said Shaukat Tarin while talking in a local tv show on Friday.

Tarin said that the levy will have to be increased from Rs20 to Rs25 per litre.

The government currently is charging Rs 5 per litre levy being charged.

Talking about Pakistan’s engagment with IMF for its programme, the Finance Minister said that the Fund had demanded presentaion of budget, so negotiations with it would continue.

However, he said Pakistan would be provided oil on deferred payments but he did not mention how much oil it would in the coming financial year.

“We clearly have conveyed to IMF that it should not be there problem that how the revenue collection target of Rs 5. 829 trillion is collected,” he explained.

There is a deadlock between boh sides over many issues including FBR’s tax collection, fixation of petroleum levy, assessment of elimination of tax exemption and time frame to increase power and gas tariffs.

It may mentioned here that the autonomy of SBP and Nepra which is yet to be approved by the parliament also involves concerns of both government and IMF.

The minister hoped that remittances would increase from $32 to $33 billion in the next fiscal year, pointing out that the current account deficit would be in the range of $2 billion to $3bilion in the next financial year.

Fida Hussnain

Fida Hussnain is a lahore based journalist. He writes on politics, religion, social issues and climate change. He is also a research fellow at University of Gujrat.