Pakistan raised the petroleum development levy by 10 rupees to 70 rupees per liter to meet IMF requirements ahead of its next loan installment. The move aims to offset declining tax revenue as the country progresses toward securing the second $1 billion tranche of its $7 billion loan deal.IMF mission chief Nathan Porter praised Pakistan’s strong program implementation after a visit to Islamabad and Karachi.
Pakistan will receive its next loan installment once a staff-level agreement is reached, with discussions continuing virtually. IMF funding has been vital in stabilizing Pakistan’s economy amid a dollar shortage.
To meet loan conditions, Prime Minister Shehbaz Sharif’s government has taken bold steps, including taxing agricultural income and attempting to sell a stake in Pakistan International Airlines.Rising reserves and cooling inflation give Pakistan’s central bank room for growth. Moody’s and Fitch upgraded its credit ratings the previous year.
