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Govt decides to hike petroleum levy from Nov 16

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2 years ago

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  • Govt jacks up petroleum levy from Nov 16. 
  • Decision was made in line with IMF instructions. 
  • ECC decides to raise levy from to Rs50/lit on RON 95 and above. 

The federal government has approved an increase in the petroleum development levy, Geo News reported. Sources said the government made this decision at the behest of the International Monetary Fund (IMF).

Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) at the Finance Division, on Friday.

Federal Minister of Planning, Development & Special Initiatives Ahsan Iqbal, Federal Minister for Power Khurram Dastgir Khan, MNA and former premier Shahid Khaqan Abbasi, Minister of State for Finance and Revenue Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, federal secretaries, the chairman of Federal Board of Revenue and other senior officers attended the meeting.

The FBR presented a summary of the increase in the rate of sales tax on HOBC. It was conveyed that the rates of sales tax on POL products were reduced to zero from February 1, 2022, which put pressure on FBR’s efforts to achieve its revenue targets. Consequently, the ECC has decided to raise the petroleum levy from Rs30 to Rs50 per litre on RON 95 and above with effect from November 16, 2022, which is a luxury item being consumed by wealthy consumers in their expensive vehicles.

The ECC also approved Technical Supplementary Grants of Rs5 billion for the conduct of the 7th population census.

The Ministry of Energy (Petroleum Division) submitted a summary on High-Speed Diesel/ Gas oil premium and informed that due to the difference in premium on import of HSD for importing oil marketing companies (OMCs) and PSO, there is an unsustainable position for importing OMCs and smooth supply of HSD in the country.

In order to ensure sustained supply/import security, the ECC after detailed discussion allowed a premium on HSD subject to maximum capping at $15/BBL for importing OMCs other than PSO for the months of November and December 2022. 

Under the agreement with the IMF, the government has to fetch a revenue of Rs850 billion during the current fiscal by jacking the Petroleum Levy up to Rs50 per litre on petrol and diesel.

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In interbank trade, the Pakistani rupee beats the US dollar.

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6 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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7 days ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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The inflation rate in Pakistan dropped to its lowest level.

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7 days ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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