ISLAMABAD: The Pakistani government has increased the prices of petroleum products by as much as Rs35 per liter, Finance Minister Ishaq Dar announced on Sunday, as the South Asian country struggles to meet International Monetary Fund’s demands to resume its $7 billion loan program. 
The cash-strapped South Asian nation has been desperately looking for external financing as its foreign exchange reserves have depleted to a staggering $3.7 billion — barely enough to provide three-week import cover. 
The 9th review of Pakistan’s $7 billion IMF loan program has been pending since September last year, primarily because of the tough preconditions set by the global money lender. One of the prerequisites is to achieve a petroleum development levy (PDL) to the tune of Rs855 billion ($3.4 billion) by June 2023.   
Dar said the government had to increase the prices of petroleum products, considering the recent devaluation of Pakistani currency and up to 11 percent in global fuel prices. 
“A decision has been made that petrol and diesel prices will be increased by Rs35 each, and kerosene oil and light diesel oil will be increased by Rs18 each,” he said in his televised comments. 
Pakistan revises petroleum prices every fortnight, but the hike two days in advance of the scheduled revision shows the government’s despair for the resumption of the IMF program to keep the frail economy on track. 
Following Sunday’s revision of prices, petrol will now be available at Rs249.8 per liter, high-speed diesel at Rs262.8, kerosene oil at Rs189.83 and light diesel oil at Rs187 per liter, Dar announced. 
“These prices will be applicable from 11am on Sunday, 29th January,” he added. 
The hike follows more than 12 percent depreciation in the value of the local currency this week and is expected to further increase inflation in Pakistan, which was already hovering above 24 percent in December.