ISLAMABAD: Hours after presenting ‘mini-budget’, government has jacked up price of petrol by Rs 22.20 per litre in bid to appease International Monetary Fund (IMF) for reviving $ 7 billion Extended Fund Facility (EFF). New price of petrol will be Rs 272 per litre.

Price of petrol to historic high in bid for unlocking critical loan tranche, hours after unveiling tax-loaded ‘mini-budget’. New prices came into effect after 12 midnight, press release from Finance Division read.

Surge has taken place due to rupee’s devaluation against dollar. Price of high-speed diesel has been increased to Rs 280 per litre after hike of Rs 17.20. Kerosene oil will now be available at Rs 202.73 per litre following Rs 12.90 hike. Meanwhile, light diesel oil will be available at Rs 196.68 per litre after an increase of Rs 9.68. Increase in price is due to Pakistani rupee devaluation applicable for calculation of current pricing period, press release said. Government is in race against time to implement new tax measures and reach an agreement with IMF as country reserves have depleted to critically low level of $ 2.9 billion, which experts believe is enough for only 16 or 17 days of imports.

Our view is that an IMF bailout alone isnt going to be enough to get economy back on track. What economy really needs is persistent and sound economic management, senior economist Katrina Ell said in an interview.

Published in The Daily National Courier, February, 16 2023

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