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The federal government is likely to raise petroleum prices by up to Rs20 per litre  — AFP/File ISLAMABAD: In a bid to get stalled $6 billion IMF bailout package revived, the coalition government is likely to raise the prices of petroleum products by up to a whopping Rs20 per litre from September 1, revealed well-placed sources. In the letter of intent (LoI) to the IMF, the government had said, in writing, that they have imposed a sales tax on petroleum products. The sources, however, said that the rate of sales tax on the commodity is likely to be raised from the next month, Daily Jang reported.  In order to fulfil the pre-requisites of the IMF, the federal government is likely to abolish the sales tax exemptions on petroleum products for the agricultural sector from September 1, the sources added. The authorities are mulling introducing 10.5% sales tax on petroleum products from October under the conditions set by the International Monetary Fund (IMF). It is pertinent

(Representational) Higher petrol price — Canva/file  Dr Atif Mian says petrol currently 20% cheaper than India. Economist says price needs to remain high to bring current account in balance. Advises high petrol prices must be accompanied by a serious energy transition policy. Internationally acclaimed Pakistani American economist Dr Atif Mian has criticised politicians and journalists arguing in favour of a reduction in petrol prices in Pakistan, saying that such a view is "irresponsible and short-sighted", and explained the need to keep the rates high. He said that Pakistan just had a very serious balance of crisis and it is only due to the International Monetary Fund (IMF) nod that there is some stability in the exchange rate. "This is hardly the time to throw caution to the wind," Dr Mian said. "Pakistan needs a real strategy to get out of the perennial balance of payments trouble," the economist wrote. He elaborated by saying that the coun