Gov of Pakistan increaser Petroleum prices by 11 PKR from July 16th

It was expected by the government of Pakistan that they were going to increase the petrol and diesel price by a margin due to a commitment with the IMF. During the budget of FY 2026, the government of Pakistan said that the petroleum levy would increase by a significant margin due to IMF demand to increase tax revenue and carbon taxes as well. It was expected that Pakistan would accept these conditions, as the IMF has been strict with Pakistan due to a lack of reforms. 

Pakistan has increased petrol prices from PKR 266.79 to PKR 272.15, which is a PKR 5.36 price increase for 15 days. High-speed diesel price increased from PKR 272.98 to PKR 284.35, which is a massive increase of PKR 11.37. It was expected that these prices would increase because the IMF has said multiple times that Pakistan is taxing lower than the countries that are producing oil. However, if Pakistan were in an IMF program, then Pakistan would have adjusted the taxes or lowered them, and again it would have created a fiscal mismanagement like in the past due to political pressure. 

Pakistan would require reforms to lower the taxes and adjust them. It requires every sector to contribute and adjust the prices and reduce the tax, which is a long-term reform. The Government of Pakistan would require an out-of-the-box solution for this.