ISLAMABAD: The government could not decide on allowing dual nationals to hold key positions and imposing a carbon levy to reduce carbon emissions and decisions on these matters were postponed during two separate meetings yesterday.
One meeting was chaired by Prime Minister Shehbaz Sharif and the other by Deputy Prime Minister Ishaq Dar.
During the federal cabinet meeting, the prime minister postponed the summary of allowing dual nationals to hold the posts of Governor, Deputy Governors and Directors of the State Bank for the third time in a row.
A few hours before the cabinet meeting, Ishaq Dar chaired an inconclusive meeting on carbon levy. Key government officials said that the current rate of petroleum levy of Rs60 is proposed to be increased for a short period to prevent some decline in diesel and petrol prices.
The law allows for an increase in petroleum levy up to Rs70 per liter. A Rs10 increase in the levy rate could generate an additional Rs15 billion per month for the government.
The IMF has also proposed introducing a Rs10 per litre carbon levy over three years, starting at Rs3 per litre in the first year.
The proposal is part of the conditionality for the IMF’s new Climate Resilience Facility of around $1 billion, which is currently under negotiation.
Sources said the government is considering both proposals to introduce a carbon levy and increase the petroleum levy rate simultaneously.
The prime minister chaired a meeting on the carbon levy and petroleum levy issues on Monday, but no decision was taken. He then referred the matter to Ishaq Dar, who chaired a meeting on Tuesday, but there was disagreement on the question of how the levy proceeds would be used.
