The Government of Pakistan submits its five-year petroleum levy collection plan to the International Monetary Fund (IMF), outlining future fiscal strategies.
According to the submitted documents, the climate support levy on petrol and diesel will increase by Rs2.5 per liter starting July 1, 2026. The documents include detailed year-on-year estimates of petroleum levy collections.
For the current fiscal year, collections are projected at Rs1,468 billion. The next fiscal year is estimated at Rs1,638 billion. Projections continue with Rs1,787 billion for 2027-28, Rs1,989 billion for 2028-29, and Rs2,212 billion for 2029-30. Historical data shows that collections stood at Rs1,220 billion in the previous fiscal year, Rs1,019 billion in 2023-24, and Rs580 billion in 2022-23.
The report also details current petroleum levies. Petrol carries a levy of Rs79.62 per liter, while high-speed diesel is taxed at Rs75.41 per liter. The climate support levy of Rs2.5 per liter applies separately to both fuels, reflecting government efforts to fund climate initiatives.
The notification issued by the government in the last fortnight review confirms changes in petroleum prices. Petrol remains unchanged at Rs263.45 per liter, while high-speed diesel has been reduced by Rs14 to Rs265.65 per liter.
These projections and notifications reflect Pakistan’s strategy to balance fiscal revenue with climate-related measures. By submitting this detailed levy plan, the government aims to maintain transparency and ensure proper planning for petroleum revenue collection.
Experts say the submission provides clarity on how the government intends to manage energy revenues while supporting environmental initiatives. The five-year plan will guide budget allocations and help policymakers address both economic and climate objectives.
The government’s decision to submit comprehensive petroleum levy projections to the IMF demonstrates a structured approach toward fiscal stability and sustainable energy management in Pakistan.
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