The International Monetary Fund has asked Pakistan to immediately increase petrol and diesel prices in line with international market rates and avoid providing any subsidy on petroleum products.
According to sources, virtual talks between Pakistani authorities and the IMF are currently under way as part of ongoing economic consultations.
During the discussions, IMF officials stressed that the government should refrain from granting subsidies on petrol and diesel and ensure that global price increases are passed on to consumers without delay.
The Fund also emphasised the need to meet the target of Rs1,468 billion under the petroleum development levy by June 30.
Sources said that during the first six months of the current fiscal year, from July to December, the government collected Rs822 billion under the petroleum development levy, achieving more than 60 percent of the target for the period.
Officials noted that rising tensions in the Middle East have pushed up global petroleum prices, which may significantly affect domestic fuel rates in Pakistan.
According to estimates, the ex-refinery price of petrol may increase by up to Rs32 per litre by March 15, rising from Rs153.50 to around Rs186.47 per litre.
Similarly, the price of high-speed diesel is expected to increase by more than Rs50 per litre during the same period.
In the international market, the price of high-speed diesel is projected to rise from $93.02 to around $138 per barrel, while petrol prices may increase from $79.14 to approximately $97.92 per barrel.
