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

The finance ministry rejected reports suggesting the petrol development levy (PDL) was the "central point" of Pakistan's ongoing program with the International Monetary Fund (IMF), stating the claims were "misleading". The program includes a $7 billion Extended Fund Facility (EFF) and a $1.1bn Resilience and Sustainability Facility (RSF).

Reports indicated the PDL was prioritized over other fiscal strategies, but the ministry argued this was an exaggeration of the PDL's role, emphasizing the program's broader fiscal strategy encompassing revenue mobilisation, tax base expansion, provincial taxation, and expenditure rationalisation. The ministry also disputed the claim that the IMF program lacked conditionality regarding petroleum levy pricing, noting that program documents included explicit details for petroleum pricing adjustments.

They further rejected linking inflation, unemployment, poverty, and low economic growth solely to the PDL, deeming this assertion "technically narrow and potentially misleading". The ministry asserted the IMF program is a "whole-of-government" effort, not solely a Finance Division initiative, and that macroeconomic stabilisation is part of a strategy towards sustainable and inclusive economic growth.