Prime Minister Shehbaz Sharif’s government has once again postponed decisions on two critical policy matters – whether to allow dual nationals in top State Bank of Pakistan positions and the implementation of a new carbon levy.

At Tuesday’s cabinet meeting, the Prime Minister deferred for the third consecutive time a ruling on whether dual nationals can serve as SBP governor, deputy governors, or directors. Earlier the same day, a meeting led by Deputy Prime Minister Ishaq Dar on the proposed carbon levy also ended without conclusion.

The Express Tribune reports that strong internal pressure exists to increase the petroleum levy from the current Rs. 60 per liter to the legal ceiling of Rs. 70 per liter. Such a move would generate an estimated Rs. 15 billion in additional monthly revenue, helping offset the government’s significant revenue shortfalls while partially counterbalancing upcoming fuel price reductions.

Meanwhile, the IMF has proposed a separate carbon levy beginning at Rs. 3 per liter and rising to Rs. 10 over three years as part of conditions for Pakistan’s access to a new $1 billion Climate Resilience Facility currently under negotiation.

Sources indicate the government is exploring implementing both levies simultaneously, though disagreements persist over how to utilize the proceeds. The climate change ministry wants funds directed toward environmental initiatives, while others propose using the revenue to reduce electricity bill sales tax from 18% to 10%.

The matter was first discussed in a Monday meeting chaired by the Prime Minister, who subsequently referred it to Dar for further deliberation. Tuesday’s follow-up meeting also failed to produce consensus.