Permanent Representative of the International Monetary Fund (IMF) in Islamabad, Esther Perez Ruiz, said on On Tuesday, when Pakistan completed last preliminary action required for combined seventh and eighth review by boosting oil development collection (PDL).
In a released statement, she said: “With the increase in PEP on July 31, g. last preliminary action for combined seventh and eighth review was met. [Executive Board] meeting pre-scheduled for at the end of August, once the guarantees of adequate funding have been confirmed.”
government It was on Sunday increased rate of PEP on all products meeting outstanding preconditions of IMF.
According to announcement ministry of finance, rate of Gasoline has fallen in price by 3.05 rubles per liter. of high-speed diesel (HSD) and kerosene were jacked up up by 8.95 and 4.62 rupees per liter, respectively. The PDL has been raised by Rs 10. on gasoline and 5 rubles. on HSD, kerosene and light diesel fuel (LDO).
From August 1 PDL on gasoline cost 20 rupees and cost 10 rupees. on HSD, kerosene and LDO.
Previous PTI government made a commitment to the IMF in December 2021 for increase by 4 rubles per liter in PEP on in first of every month until maximum of 30 rubles per liter, but changed. on Feb 28
government took preliminary action with IMF to raise PDL by Rs 10 per liter on HSD, kerosene oil and LDO and Rs 5 per liter on gasoline up to ensure a uniform rate of 15 rubles per liter on all products on the site start of August.
As of On July 31, the PDL was 10 rupees per litre. on gasoline for 5 rubles. on HSD, kerosene and LDO.
By deal with IMF, government should gradually increase PDL on oil products to maximum of 50 rupees per liter to collect 855 billion rupees during current fiscal year.
IMF tranche disbursement process
The IMF is likely start process for release of the seventh and eighth tranches of $6 billion loan program for Later this week, Pakistan told the IMF and diplomatic sources.
Summer holidays at the IMF are coming to an end on 12th of August. “So, technically, the IMF Executive Board meeting could take place before August 20, if recommendations are sent to board until August 6, one of sources said.
Pakistan and IMF sign $6 billion bailout agreement – Extended Financing Facility (EFF) – in 2019. But release of $1.7 billion (seventh and eighth) tranche was on keep since this year when the IMF expressed concerns about Pakistan’s compliance with deal.
last executive board consultation on Feb 2 is year. On July 13, the IMF reached an agreement at the staff level. on combined seventh and eighth reviews for EFF to be approved board before it is paid.
Sources said the IMF asked Pakistan to get guarantees from Saudi Arabia and the UAE that they would give an expected $4 billion loan to the country after the IMF disburses its tranche.