In an effort to curry favour with the International Monetary Fund (IMF) for releasing the crucial loan tranche. Pakistan on Wednesday night increased the price of gasoline and gas to an all-time high, hours after releasing a tax-laden mini-budget.
According to a press release from the Finance Division. The price of gasoline has increased by 22.20 rupees to 272 rupees per litre. The increase has occurred as a result of the rupee’s depreciation against the dollar.
After a 17.20 rupee price increase, the cost of high-speed diesel has risen to 280 rupees per litre. Following a 12.90 rupee price increase. Kerosene oil will now be sold for 202.73 rupees per litre. Light diesel fuel, meanwhile, will cost 196.68 rupees per litre following a 9.68 rupee hike.
The new prices will take effect on Thursday at 12 a.m.
One of the prerequisites for the Washington-based lender was an increase in the price of petroleum products. Which will boost the already record-high inflation when combined with the new fiscal measures implemented through the “mini-budget.”
After the “mini-budget” and the increase in the price of gasoline, inflation is predicted to rise in Pakistan.
According to senior economist Katrina Ell of Moody’s Analytics. Inflation in Pakistan could reach 33% in the first half of 2023 before falling lower, and an IMF bailout on its own is unlikely to restore the economy, according to Geo News.
The federal government, which is led by the Pakistan Democratic Movement (PDM). Wants to increase tax collection and decrease the budget deficit through the “mini-budget.”
The Federal Board of Revenue (FBR) has issued an SRO raising the standard general sales tax (GST) rate from 17 to 18 percent in order to collect taxes totaling 115 billion rupees. The remaining 55 billion rupees will be raised through other measures related to the Finance (Supplementary) Bill 2023, or the “mini-budget.”