The federal government of Pakistan has collected a total of Rs. 371 billion in petroleum levies from the public during the first quarter of the fiscal year 2025–26 (July to September). This marks a substantial 42% increase compared to the same period last year, when Rs. 261 billion was collected in petroleum taxes.
Petroleum Levies Boost Revenue by Rs. 110 Billion
According to official data, the government earned an additional Rs. 110 billion in revenue within just the first three months of the current fiscal year. These levies are applied on petrol, diesel, and other petroleum products, which are widely used by consumers for transportation and daily needs.
IMF Targets and Economic Stability
In line with the International Monetary Fund (IMF) conditions, Pakistan has successfully maintained a budget surplus of 1.6% of the Gross Domestic Product (GDP) during this period.
The country’s primary balance — which reflects total revenue minus expenditure excluding interest payments — reached 2.7% of GDP, highlighting improved fiscal management and a more stable economic outlook.
Additional Revenue Sources: Carbon and EV Levies
Beyond petroleum levies, the government also generated income from other sources:
- Carbon Levy: Rs. 10 billion collected to support environmental initiatives.
- EV Adoption Levy: Rs. 3 billion collected to promote the shift toward clean and sustainable transportation.
These new taxes underscore Pakistan’s growing focus on environmental responsibility and green energy policies.
Provincial Revenue Distribution Under NFC Award
Under the National Finance Commission (NFC) Award, the federal government distributed Rs. 1,775 billion to the provinces during the same period:
- Punjab: Rs. 882 billion
- Sindh: Rs. 441 billion
- Khyber Pakhtunkhwa: Rs. 287 billion
- Balochistan: Rs. 164 billion
This equitable distribution supports provincial development and helps sustain public welfare initiatives across the country.
Rising Fuel Costs Burden Consumers
While the surge in petroleum levies has strengthened government revenue and helped Pakistan meet its IMF fiscal targets, it has also increased financial pressure on ordinary citizens.
Many consumers, especially those dependent on fuel for transportation and small businesses, are finding it difficult to cope with rising costs. The challenge for the government now lies in balancing fiscal growth with public affordability.
Conclusion
Pakistan’s record collection of Rs. 371 billion in petroleum levies reflects strong fiscal discipline and improved tax administration. However, as the country continues to pursue IMF-backed reforms, policymakers must ensure that economic stability does not come at the cost of public hardship.
