Pakistan has increased the price of gasoline by 22.20 rupees ($0.0835) per litre to 272 rupees ($1.02), effective Thursday, due to the country's currency's falling value, according to a statement from the finance ministry.

Since a month ago, when an artificial ceiling on the local currency was lifted to allow its value to be determined by a market-based exchange rate, the Pakistani rupee has plummeted dramatically versus the dollar.

The South Asian nation is locked in negotiations with the International Monetary Fund (IMF) to release crucial bailout funds. With only enough reserves to cover three weeks of imports and 27% inflation for decades, Pakistan is seeking to generate revenue.

Pakistan submitted a supplementary finance bill to parliament on Wednesday, proposing to increase the goods and services tax (GST) from 17% to 18% to generate an additional 639.70 billion rupees ($170 billion) during the fiscal year ending in July.

The financial plan also proposed a 25 per cent increase in taxes on luxury commodities and gains in taxes on first- and business-class air tickets, cigarettes, and sugary drinks.

According to the finance ministry, the cost of a litre of high-speed diesel has increased by 17.20 rupees. Additionally, kerosene and light diesel oil prices were raised.