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ISLAMABAD: Pakistan has met all prior conditions for the combined 7th and 8th review under the Extended Fund Facility (EFF) programme and the International Monetary Fund (IMF) Executive Board meeting is tentatively planned for late August.

This was confirmed by Esther Perez Ruiz, IMF resident representative in Pakistan, while releasing a statement Tuesday.

After the Board’s approval, Pakistan will receive around $1.177 billion.

She stated, “With the increase in PDL on July 31, the last prior action for the combined 7th and 8th review has been met. The Board meeting is tentatively planned for late August once adequate financing assurances are confirmed”.

The IMF team reached a staff-level agreement (SLA) with the Pakistan authorities last month for the conclusion of the combined seventh and eight reviews of the EFF-supported programme. The agreement is subject to approval by the IMF’s Executive Board. Subject to Board approval, about $1,177 million (SDR 894 million) will become available, bringing total disbursements under the programme to about $4.2 billion.

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Additionally, in order to support programme implementation and meet the higher financing needs in fiscal year 2023, as well as catalyze additional financing, the IMF Board will consider an extension of the EFF until end-June 2023 and an augmentation of access by SDR 720 million that will bring the total access under the EFF to about $7 billion. The government Sunday night announced slashing the petrol price by Rs3.05 per litre and increased the price of high-speed diesel by Rs8.95 per litre.

The price of kerosene (SKO) has been increased Rs4.62 per litre and the price of light diesel has been increased Rs0.12 litre.

However, the government decided not to pass on the full impact of the decrease in petrol, prices as recommended by the Oil and Gas Regulatory Authority (Ogra) but opted to increase the petroleum levy (PL) rates up to Rs10 per litre with effect from August 1, 2022.

The rates of PL on petrol have revised upward from Rs10 to Rs20 per litre.

The regulator had recommended a reduction of Rs13.05 per litre. However, the government opted to only reduced Rs3.05 per litre. The government announced Rs227.19 per litre against the recommended price of OGRA of Rs217.19 per litre.

The rate of PL on high-speed diesel has (HSD) also increased from Rs5 to Rs10 per litre. The Ogra had recommended an increase of Rs3.95 per litre in HSD price, however, the Finance Division decided to increase the price at Rs8.95 per litre by the addition of revised PL. The government announced Rs244.95 per litre price with effect from August 1-15 against recommended prices of 239.95 per litre.

The PL rate on kerosene oil (SKO) has also increased from Rs5 to Rs10 per litre. The new price of SKP has been fixed Rs201.07 per litre against a recommended price of Rs196.07 per litre. The regulator had recommended to reduce the price by 0.38 paisa but the government has increased by Rs4.62 per litre.

The price of light diesel oil (LDO) has also increased by raising PL from Rs5 to Rs10 per litre. The price has been reduced by 12 paisa against the Ogra’s recommended price reduction of Rs5.12 per litre. The oil and gas regulator had worked out prices of PL based on the last notified PL rates as well as budgeted Rs750 billion PL and zero sales tax. In line with the government’s agreement with the IMF, prices of POL were required to be passed on the consumers as worked out by the Ogra with effect from August 1.

Copyright Business Recorder, 2022

Comments

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Hussain Naqvi Aug 03, 2022 10:58am
AslamoAlikum: Good news for the nation that "Pakistan has met all prior conditions of IMF"
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Hussain Naqvi Aug 03, 2022 11:17am
To IMF : Global debt crisis caused by factors like the COVID-19 pandemic and geopolitical conflicts, there are many developing countries like Pakistan that are facing economic difficulties and need financial assistances. The dwindling foreign exchange reserves, Pakistan is in an urgent need of the IMF loan. Thank you
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SZS Aug 03, 2022 12:08pm
Ordinary citizens trying to make sense of the country's economic situation might be turning to more research based articles rather than political statement/talk shows. To encourage this understanding , please would the sub-editors include what the acronyms stand for unless these articles are meant strictly for business/finance experts? Example 1: Special Drawing Rights (SDR) or Service Delivery Objective/Scheduled Day Off/Surface dans Oeuvre/SDO, Stamp Distribution Office; 2. SKO:Superior Kerosene Oil or Sales Kick-Off or Sarvottam Kerosene Oil?
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