International Monetary Fund (IMF) Islamabad Representative Esther Perez Ruiz said on Tuesday that Pakistan had met the last prior action required for the combined 7th and 8th review by raising the petroleum development levy (PDL). The development paves the way for the disbursement of the $1.17 billion tranche.
In a statement released on Tuesday she said, "With the increase in PDL on July 31, the last prior action for the combined seventh and eighth review has been met. The [Executive Board] meeting is tentatively planned for late August once adequate financing assurances are confirmed.” The coalition government had earlier raised the PDL on all products to meet the IMF pre-condition.
The Ministry of Finance announced that the rate of petrol was reduced by Rs3.05 per litre, while the prices of high-speed diesel (HSD) and kerosene were raised by Rs8.95 and Rs4.62 per litre, respectively. The PDL was raised by Rs10 on petrol and by Rs5 each on HSD, kerosene and light diesel oil (LDO). Under the deal with the IMF, the coalition government has to increase the PDL on oil products up to Rs50 per litre in order to collect Rs855 billion during the current fiscal year. The release of the 7th and 8th loan tranche could commence sometime next week, sources claimed.