The federal government has collected Rs. 371 billion in petroleum levies from the public during the period from July to September 2025. This represents a significant 42% increase compared to the same period last year, when Rs. 261 billion was collected in petroleum taxes.
The government added an additional Rs. 110 billion to its revenue in just the first quarter of the fiscal year through these petroleum levies. These taxes are charged on petrol, diesel, and other petroleum products that consumers purchase for their vehicles and other uses.
Following conditions set by the International Monetary Fund (IMF), Pakistan successfully achieved a budget surplus of 1.6% of the Gross Domestic Product (GDP). The country’s primary balance, which measures government revenue minus expenditure excluding interest payments, reached 2.7% of GDP. These figures demonstrate improved fiscal management and economic stability.
The government also collected revenue from other sources during this period. Carbon levy collections brought in Rs. 10 billion, while the electric vehicle (EV) adoption levy generated Rs. 3 billion. These new taxes reflect efforts to address environmental concerns and promote cleaner transportation options.
Under the National Finance Commission (NFC) Award, the federal government transferred Rs. 1,775 billion to the provinces. Punjab received the largest share with Rs. 882 billion, followed by Sindh with Rs. 441 billion. Khyber Pakhtunkhwa received Rs. 287 billion, while Balochistan got Rs. 164 billion.
While these increased petroleum levies have boosted government revenue and helped meet IMF targets, they have also increased the financial burden on ordinary citizens who rely on petroleum products for transportation and daily needs.
