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Pakistan seeks to raise fuel taxes by Rs5/litre to cut debt, with IMF backing reforms.
Pakistan is proposing to raise the petroleum levy by Rs5 per litre on petrol and diesel to generate Rs540 billion over six years, helping retire Rs1.7 trillion in gas sector circular debt.
The plan includes using Rs680 billion in state oil and gas company dividends, Rs415 billion in LNG import savings, and debt relief measures like waiving interest on late payments.
The move, pending cabinet and IMF approval, aims to address long-standing tariff gaps and revenue shortfalls, with the IMF supporting reforms like cost-reflective pricing.
The broader effort is part of economic stabilization talks, though final decisions remain under review.
Pakistán busca aumentar los impuestos al combustible en Rs5/litro para reducir la deuda, con el respaldo del FMI a las reformas.