Business
The government gathers Rs1,430 billion in petroleum tax over 11 months of the ongoing fiscal year.
Pakistan has already exceeded its annual revenue target from the Petroleum Development Levy (PDL), collecting more than Rs1.43 trillion during the first eleven months of the current fiscal year, from July to May.
According to official data, the government is now on track to collect even more before the fiscal year ends, with estimates suggesting that an additional Rs100 billion could be generated in June. This would push total collections well beyond the original target of Rs1.468 trillion.
The sharp rise in revenue has been particularly noticeable in recent months. Over the last three months alone, the government collected around Rs373 billion from petroleum products, largely due to higher levy rates and stricter enforcement measures.
Monthly collections fluctuated throughout the year, starting at Rs157 billion in July. Revenues then stood at Rs103.46 billion in August, Rs112.85 billion in September, Rs143.48 billion in October, Rs148.36 billion in November, and Rs162.46 billion in December. Collections reached Rs108.76 billion in January, Rs120.39 billion in February, and Rs139.48 billion in March, before rising to about Rs146 billion in April. May contributed another Rs87.5 billion.
A closer look at the figures shows that Rs686.52 billion came from imported petroleum products, while Rs753.54 billion was generated from locally refined crude oil.
Officials say the stronger-than-expected performance was driven by higher levy rates introduced under the Finance Bill, in line with commitments made to the International Monetary Fund (IMF). At the same time, the government intensified efforts to curb fuel smuggling and improve tax compliance.
Authorities believe these enforcement measures have played a major role in boosting revenue. Customs Enforcement’s crackdown on illegal fuel trade helped shift sales into the formal market, increasing both recorded fuel consumption and tax collection. Meanwhile, the Federal Board of Revenue (FBR) identified 1,576 illegal fuel stations across the country and shut down 1,442 of them, further strengthening government revenues.
The figures highlight how a combination of higher levy rates and stricter enforcement has enabled the government to not only meet but exceed one of its key fiscal targets well before the end of the financial year.
Petroleum Minister Ali Pervaiz Malik said the government would analyse international price indicators for fuel and diesel this week to gauge possible assistance for consumers.
The administration is not favouring any particular sector and is not putting any unnecessary strain on any segment, the minister stated on X (previously Twitter).
The minister said the government will continue to operate within the confines of its international commitments and pass on greatest possible advantage to consumers.
Prime Minister Shehbaz Sharif has so far lowered the rates of fuel by Rs200 per litre and petrol by Rs155 per litre, Ali Pervaiz Malik remarked.
International pricing indications for petrol and diesel will be studied over the week before any further decision is taken, he said.
Officially enacting the federal budget for the fiscal year 2026-27, President Asif Ali Zardari gave his constitutional assent to the Finance Bill 2026 on Friday. This allowed the bill to become law.
The budget for the upcoming fiscal year, which will go into effect on July 1, 2026, is formalised with the assent of the president, as stipulated by Article 75 of the Constitution.
On the 12th of June, 2026, the Federal Minister for Finance and Revenue, Muhammad Aurangzeb, delivered a presentation to the National Assembly in that capacity.
By rejecting all of the modifications that were proposed by the opposition, the House of Representatives was able to pass the Finance Bill 2026 on June 23, following the debate that took place.
Pakistan for the first time sees record high imports of heavy vehicles; buses, trucks surge during current fiscal year
Imports of buses and trucks hit $262.4 million in the first 11 months of fiscal year 2025-26, the highest ever in the country’s history, data from the State Bank of Pakistan (SBP) showed.
The data showed that imports of buses and trucks during the same period of FY 2024-25 were at $57.8 million, showing a substantial increase year-on-year.
The State Bank data indicated that the majority of heavy transport imports were registered as completely built units (CBUs).
Analysts said the increase in transport imports was due to lower loan rates and government incentives that encouraged businesses and transport operators to expand their fleets by purchasing foreign cars.
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