The decision came days before an expected visit by an International Monetary Fund (IMF) mission to Pakistan this month for discussions on the stalled ninth review of the country’s existing financing programme.
Last week, the Pakistani rupee lost nearly 12 percent of its value after the removal of price limits imposed by the government and opposed by the International Monetary Fund.
Finance Minister Isaac Dar said at a news conference on Sunday that he hoped the announcement would dispel speculation circulating on social media about raising prices further or running out of petrol. He said that the increase came on the recommendation of the oil and gas authorities due to the high cost of purchasing energy in the global market.
“We will have to take into account the rise in global oil prices and the depreciation of the rupee,” he said.
Pakistan is experiencing a balance of payments crisis and the sharp depreciation of the Pakistani rupee will lead to higher prices of imported goods. Energy accounts for a large part of Pakistan’s import bill.
The success of the visit of the International Monetary Fund is of paramount importance to Pakistan, which is witnessing an exacerbation of the severe balance of payments crisis and is striving to attract external financing, in light of the decline in its foreign currency reserves to cover less than three weeks of imports.
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