The top International Monetary Fund (IMF) official in Islamabad has confirmed Pakistan had met the final precondition for the seventh and eighth review under a $6 billion loan program. Pakistan met the last condition by increasing the petroleum development levy (PDL) on July 31. The PDL was raised by Rs10 on petrol and by Rs5 each on HSD, kerosene and light diesel oil (LDO).
“With the increase in PDL on July 31, the last prior action for the combined 7th and 8th review has been met,” said the IMF’s resident chief in Pakistan, Esther Perez Ruiz.
From Aug 1, the PDL on petrol stood at Rs20 while it was Rs10 on HSD, kerosene and LDO.
Under the deal with the IMF, the government has to gradually increase PDL on oil products to a maximum of Rs50 per litre to collect Rs855bn during the current fiscal year.
Last week, media reported Pakistan’s army chief General Qamar Javed Bajwa had asked the Biden administration to help secure an early release of the IMF money, as Pakistan’s national currency faced rapid depreciation against the greenback.
Prior to that, the country reached at a staff-level agreement with the IMF on July 13 for the continuation of the loan facility.