
IMF sees Rs215bn PDL shortfall in FY25
ISLAMABAD: The IMF has projected a shortfall of Rs 215 billion in petroleum development levy (PDL) on petroleum products for current fiscal year 2024-25 and projected collection of one percent of the GDP, with total collection depending on the GDP growth.
This was revealed in the IMF report 'First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of Performance Criteria and Request for an Arrangement Under the Resilience and Sustainable Facility' released on Saturday.
In current fiscal year, IMF projected Rs 1066 billion PDL collection against target set at Rs1281 billion despite the removal of PDL cap on petroleum products through a presidential ordinance. Till March 15, 2025, the government was charging a maximum levy of Rs60 per litre on petrol and high speed diesel (HSD), however, it was raised by Rs10 per litre from March 16 onwards to Rs70 per litre. On April 15, the federal government enhanced the PDL on petrol by Rs8.02 per litre and HSD Rs7.01 per litre, taking it to Rs 78.02 per litre and Rs 77.01 per litre on both the products.
The federal government collected PDL of Rs833 billion during the first nine months (July to March) of the ongoing fiscal year. With the current pace of PDL collection, the IMF projected that collection would be approximately Rs1066 billion against the budget target of Rs1281 billion for the ongoing fiscal year 2024-25.
The collection of PDL from previous fiscal year (July to March of 023-24) was Rs719.592 billion.
Copyright Business Recorder, 2025
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Recorder
8 hours ago
- Business Recorder
Pakistan traders, consumers, politicians reject taxation measures
PESHAWAR: Traders, consumers and politicians have rejected the federal budget and warned that imposition of massive new taxes will further push the downtrodden class below poverty. Reacting to the federal government's budget office bearers of various groups of traders, and leaders of political parties in separate statements here on Wednesday pointed out that the rulers failed to provide any relief to the poverty-stricken masses. Qaumi Watan Party (QWP) provincial Chairman Sikandar Hayat Khan Sherpao said the federal budget failed to reflect the aspirations of the people and offered no relief to the public, business community as well as the agricultural sector. He said the budget lacked any measures aimed at economic growth, agricultural revival, or public welfare. He warned that the imposition of massive taxes was likely to have severe negative impacts, particularly on agriculture, which was already facing unprecedented decline. He pointed out that inflation was at its highest level and agricultural degradation was pushing nearly half of the country's population below the poverty line. He remarked 'Instead of curbing its extravagant expenditures, the government has increased them by 17 percent, and this burden will ultimately fall on the poor.' Highlighting regional disparities, Sikandar Sherpao said around 42 percent of the country's population now lived below the poverty line; a number that had surged to 48 percent in Khyber Pakhtunkhwa and nearly 70 percent in Balochistan. 'Despite depriving smaller provinces of their due resources, the government is imposing heavy taxes on them,' he added. Sikandar Sherpao criticised the government for once again failing to allocate promised funds for the merged tribal districts, warning that continued neglect would lead to further underdevelopment and despair in the region. Sikandar Sherpao expressed alarm over the state of agriculture, noting that agricultural output recorded a sharp decline from 6.4 percent growth last year to just 0.65 percent this year. 'This is a matter of serious concern, given our heavy economic reliance on agriculture,' he stated, accusing the government of using IMF conditions as a pretext to overburden the sector with unjust taxes. The QWP leader further said there was little hope for a significant increase in exports under the current circumstances. Regarding the 10 percent salary increase for government employees, he termed it deceptive. 'The government has taken back double the amount through excessive taxation,' he said. He also questioned the rising value of the US dollar in Pakistan while it was declining globally, blaming it on flawed government policies. 'A lower dollar rate would reduce national debt and petroleum product prices,' he observed. Expressing scepticism over the government's ambitious tax target of Rs14,000 billion for the next fiscal year, Sikandar Sherpao noted that it had failed to meet last year's target of Rs12,700 billion. 'How can the government expect to achieve an even higher target when it couldn't meet the previous one?' he asked. The QWP leader warned that the overall impact of the federal budget would lead to a further spike in inflation and hurt the poor. He lamented the lack of specific measures for the development of smaller provinces, saying it would only deepen their sense of deprivation. Similarly, Tajir Itehad provincial president Mujeeb-ur-Rehman, also strongly criticized the budget, calling it a 'budget of numbers' that fails to address the real issues faced by traders and the general public. Mujeeb-ur-Rehman stated that the implementation of new taxes worth Rs. 2,000 billion will make it impossible for businesses to operate. He emphasized that the tax target of Rs. 14,000 billion was unrealistic and will further shrink the economy. He questioned how the government plans to service debts exceeding Rs. 8,500 billion without a viable strategy. He said increasing the petroleum levy from Rs. 78 to Rs. 100 per liter will be detrimental to the economy. He expressed concerns that the ordinance will open new avenues for corruption and bribery. He warned that digital invoicing will empower FBR officers with unlimited powers, making it difficult for businesses to operate. Instead of expanding the tax net, the government is increasing the tax burden on existing filers. He demanded that the condition of paying extra Rs. 2-3 per liter for petrol purchases without a card should be abolished. Electricity prices should be reduced, and 13 types of taxes on electricity should be abolished to promote economic growth. Copyright Business Recorder, 2025


Business Recorder
13 hours ago
- Business Recorder
Investor confidence increasing due to govt policies: Azma
LAHORE: Punjab Information Minister Azma Bokhari has said that investors' confidence is rising due to government policies and the stock exchange is setting new records. Speaking at a press conference at DGPR alongside the Minister for Local Government, Azma Bokhari remarked that Pakistan is currently witnessing a season of positive developments. She said the government has provided substantial relief to salaried individuals by reducing their tax burden, and congratulated the Prime Minister for it. Despite IMF pressure, the federal government presented a balanced and people-friendly budget, she said. 'Those who were hoping for Pakistan's default are still unable to digest any good news that benefits the nation,' she said, adding 'The federal budget 2025-26 provides relief to the people, yet some elements wished that Pakistan would become like Sri Lanka and fail to secure the IMF programme.' Bokhari said that Pakistan Tehreek-e-Insaf (PTI) is the only party that cannot tolerate national progress. She said these same individuals are now running a 'March to Washington' campaign. Over the last year, the Punjab government has achieved significant successes, which these elements find hard to accept. On the day of the budget, the nation witnessed how PTI turned the National Assembly into a marketplace. Their approach has always been, do nothing, and prevent others from doing anything as well, she added. Azma highlighted that the exemplary cleanliness arrangements across Punjab during Eid-ul-Azha were widely appreciated by the public, with citizens offering prayers for the Chief Minister. However, some elements were bothered even by this success. She also mentioned that Federal Railways Minister Hanif Abbasi requested the Punjab government to support cleanliness operations in other areas as well. Azma Bokhari criticised those who raise concerns about parliamentarians' salaries while ignoring the fact that the Prime Minister and Finance Minister draw no salaries. She urged the public to also consider when the last time parliamentary salaries were increased. 'The people like us from middle-class backgrounds are also involved in politics. Should we, too, start a business alongside politics?' she asked. She mocked Goher Ayub's post-defeat statement in Sumbariyal, where he claimed no campaign was run. 'The truth is that these people, along with their YouTubers, are only loud online. On the ground, they have no presence,' she said. She also remarked, 'The 'Field Marshal' is heading to the United States, but let it be clear, honour and disgrace lie in the hands of Allah — and Allah has honoured him greatly.' The Punjab Local Government Minister Zeeshan Rafiq said that during the three days of Eid, exceptional cleanliness arrangements were made across Punjab. The Chief Minister personally oversaw all operations for four days. A total of 315,669 animal remains were collected and disposed of within just three days — a record achievement, he said, adding: 'The 10-day cattle markets were established across Punjab with model arrangements. Around 12,000 public complaints were received and addressed promptly.' He acknowledged that the decision to outsource sanitation services initially drew criticism, but the government acted by issuing notices to companies where complaints of unpaid staff wages emerged. Copyright Business Recorder, 2025


Business Recorder
14 hours ago
- Business Recorder
Budget: JI assails govt for ‘neglecting' Karachi
KARACHI: Jamaat-e-Islami (JI) Karachi Chief, Monem Zafar Khan has strongly criticised the budget 2025-26, claiming it demonstrated a clear neglect of Karachi — the economic hub of the country. Speaking at a press conference held at Idara Noor-e-Haq, he said that Karachi was conspicuously missing from the list of federal priorities. Flanked by several town chairmen, Monem Zafar Khan demanded an allocation of Rs 500 billion for Karachi's development, along with Rs 2 billion for each town and Rs 2.5 million for every Union Council (UC), in order to address the city's pressing issues. Highlighting the severe water crisis in Karachi, he said the K-IV water supply project — vital for the city's future — appears to have been sidelined by the federal government. Although Rs 40 billion were requested, the budget allocates just Rs 3.2 billion for the project, despite its scheduled completion by June 2026. He pointed out that while the Water Resources Division was allocated Rs 133 billion, the K-IV project's share amounts to only 2.5 percent of that total. The JI Karachi chief denounced the federal budget as a 'jigsaw puzzle of statistics' that ignores the city's core issues. He noted that the Karachi IT Park, launched in 2022 and expected to complete by 2026, received only Rs6 billion — a figure he described as 'peanuts' in relation to the scale and importance of the project. He further criticised the reduction in the Higher Education Commission's budget from Rs 65 billion to Rs 39.5 billion, and condemned the 18 percent tax imposed on the solar energy sector, calling it a severe blow to an emerging industry. Monem Zafar Khan lambasted the federal government for failing to complete several critical transport projects in the city, including the Green Line Bus, 20-bus Orange Line, and the Red Line. He stressed that Karachi has long been deprived of its fair share in resources, despite being the financial lifeline of Pakistan. Referring to historical trends, he said that while Sindh received Rs 178 billion from the federal government in 2007-08, the allocation has now increased to Rs 1,853 billion. Yet, the provincial government continues to centralise power, ignoring the urgent need for administrative and fiscal devolution. Monem Zafar Khan also turned his attention to what he described as rampant corruption and poor governance in solid waste management, particularly under the Pakistan Peoples Party (PPP). He accused the Sindh government of outsourcing Karachi's waste management to inefficient and corrupt contractors, leading to severe issues during Eid-ul-Azha. He shared specific examples, including the case of a JI-run town that submitted its Eid waste management plan well in advance. The Solid Waste Management Board (SWMB) responded only two days before Eid, disregarding all local recommendations and issuing outdated instructions. In another case, while the SWMB committed to sending 15 pickup vehicles, only 10 were dispatched on the day — raising questions about the misuse of funds allocated for vehicles, staff, and fuel. The JI leader also narrated an incident where a town chairman lodged a complaint with the mayor about waste management failures. Instead of holding the contractor accountable, the mayor suspended the town's Deputy Director of Solid Waste, he said. In a scathing indictment, Monem Zafar Khan also accused the MQM, PPP, and PML-N of complicity in a 'fake census', which, according to him, cut Karachi's population in half. This undercounting, he said, has serious consequences for resource allocation and representation. He also highlighted the disparity between the government's treatment of the poor and lawmakers. 'On one hand, 100 million Pakistanis live below the poverty line. On the other, the government has approved a six hundred percent increase in the speaker's allowances and over 140 percent salary hikes for lawmakers,' he stated. Monem Zafar Khan urged the federal government to revise its approach and recognise Karachi's pivotal role in the national economy. He called for transparent governance, fair distribution of resources, and greater autonomy for local administrations to ensure the city's problems are addressed effectively. Copyright Business Recorder, 2025