Pakistan has assured the International Monetary Fund (IMF) to gradually increase the levy on petroleum products up to Rs50 per litre.

According to details, a letter of intent has been agreed upon between Pakistan and the IMF.

In the LOI, Pakistan has assured the international lender to gradually increase the levy on petroleum products to Rs50 per litre.

Sources said that from September 1, the levy on petrol will be increased by Rs10 and on diesel by Rs5 per litre.

Sources said that the levy will be increased by another Rs5.5 per litre in the coming months and by January 2023, the rate of levy will increase to Rs50 per litre on petrol and diesel.

According to the sources, at present a levy of 20 rupees is being collected on petrol and Rs10 on diesel and kerosene, and the target is to collect Rs855 billion in the current financial year of 2022-23 in the form of petroleum levy.

Earlier in the day, Finance Minister Miftah Ismail had announced that Pakistan has sent back the signed letter of intent (LoI) to the International Monetary Fund (IMF).

Speaking to media in Islamabad, Miftah Ismail said that the LoI was sent to the    IMF after being signed by him and acting governor of State Bank of Pakistan (SBP).