Reports of petroleum levy being 'central point' in IMF programme are 'misleading': finance ministry

The finance ministry's statement on Tuesday refuted claims from an Express Tribune report that the Pakistan government had centered the IMF programme on the petroleum development levy (PDL). The ministry clarified that the programme's focus was much broader, encompassing revenue mobilisation, tax base expansion, and provincial taxation.

The PDL was described as just one of several revenue instruments, and not a central component of the programme. The ministry also disputed the notion that the IMF had not conditioned the financial aid on the levying rate, stating that published programme documents do outline petroleum pricing adjustments. The ministry further refuted the report's implication that fiscal instability, unemployment, poverty, and low economic growth were directly linked to the PDL.

It highlighted that macroeconomic outcomes are influenced by a range of factors, not solely fiscal policies. The ministry also pointed out that the programme's design and negotiations were conducted with "tight control," emphasizing that the accusations about the programme's design were "analytically incorrect." Additionally, the ministry clarified that the IMF programme is a "whole-of-government programme," involving multiple federal and provincial institutions, not just the Finance Division.