Petroleum levy increases were demanded by the IMF as a conditionality primarily to achieve which objective?
Q1. Petroleum levy increases were demanded by the IMF as a conditionality primarily to achieve which objective?
Answer: Increase government revenue and reduce subsidy burden
Explanation: The IMF required Pakistan to raise petroleum levy rates to increase non-tax revenue, reduce fiscal deficit, and eliminate costly fuel subsidies that were distorting prices and straining the budget under the 2023 SBA conditions.