Govt Collects Rs1.576 Trillion in Petroleum Levy During FY2025-26

Petroleum levy collection increased 29% to Rs1,576 billion during FY2025-26. Government collected over Rs356 billion more through the levy compared with the previous fiscal year. Federal expenditure reached Rs15,282 billion, while the fiscal deficit stood at Rs4,763 billion. Defence spending increased 18%, while subsidy and development expenditures declined. The federal government collected Rs1,576 billion, or Rs1.576 trillion, in petroleum levy from consumers during fiscal year 2025-26, recording a 29% increase compared with the previous year, according to figures released by the Ministry of Finance. The increase came as Pakistan continued implementing revenue measures under its agreement with the International Monetary Fund (IMF). Official figures showed that petroleum levy collection rose by more than Rs356 billion during the year, compared with Rs1,220 billion collected in the previous fiscal year. Apart from the petroleum levy, the government collected around Rs26 billion through customs duty and carbon levy, according to official documents. Federal government expenditure also increased during FY2025-26, reaching Rs15,282 billion. The fiscal deficit was recorded at Rs4,763 billion, equivalent to 2.6% of gross domestic product (GDP). The provinces received Rs7,668 billion under the National Finance Commission (NFC) award during the fiscal year, according to the Ministry of Finance data. Defence expenditure increased by 18% to Rs2,588 billion during the year. The figures showed that defence spending remained one of the major components of federal expenditure. At the same time, government spending on subsidies declined significantly. Subsidy expenditure fell by 22%, from around Rs1,300 billion in the previous fiscal year to Rs1,001 billion in FY2025-26. Development expenditure also recorded a decline during the period, falling to Rs727 billion from Rs786 billion in the previous fiscal year. Also Read