Pakistan collected Rs2.725 trillion ($9.8 billion) in petroleum levy between April 2024 and March 2026, official data confirmed, exceeding its combined IMF loan value by Rs385 billion.
The total value of Pakistan’s two active IMF loan programmes during the same period stands at approximately Rs2.340 trillion ($8.4 billion) at current exchange rates.
Record collection targets for FY2025-26
The government has set a petroleum levy collection target of Rs1,468.395 billion for the ongoing fiscal year 2025-26, the highest such target in Pakistan’s history.
In the first nine months of FY2025-26, the government collected over Rs1,205 billion, compared to Rs1,220.21 billion collected across the full 12 months of FY2024-25.
During the April to June quarter of FY2023-24, petroleum levy collections amounted to Rs299.63 billion, reflecting consistent growth in annual levy generation over recent years.
IMF programmes and climate levy
Pakistan is enrolled in two IMF programmes: a $7 billion Extended Fund Facility and a separate $1.4 billion Climate Resilience and Sustainability Facility for climate financing.
Approximately $4.8 billion has been disbursed under both programmes so far, equivalent to around Rs1,337 billion at the current rupee-to-dollar exchange rate.
The government also collected Rs37.27 billion under a carbon levy during this period, alongside a Rs2.5 per litre climate support levy on petrol and diesel imposed at IMF’s request.
The petroleum levy is classified as non-tax revenue and is retained entirely by the federal government, unlike FBR tax collections, of which 57.5 percent is transferred to provinces.
Levy rate increases: a timeline
During FY2024-25, the government raised the maximum permissible petroleum levy from Rs60 per litre to Rs70 per litre through the federal finance bill passed that year.
The levy on both petrol and high-speed diesel was held at Rs60 per litre until 15 March 2025, when both rates were raised by Rs10 to Rs70 per litre.
On 15 April 2025, the levy on petrol rose by Rs8.02 per litre to Rs78.02, while the levy on high-speed diesel increased by Rs7.01 per litre to Rs77.01.
By January 2026, the levy on petrol was further raised by Rs4.65 to Rs84.27 per litre, while the levy on high-speed diesel increased by Rs0.80 to Rs76.21 per litre.
On 15 March 2026, the federal government raised the levy on petrol by Rs20.97 per litre to Rs105.37, while the levy on high-speed diesel was cut by Rs20.97 to Rs55.24.
Dramatic April 2026 revision and reversal
On 2 April 2026, the government sharply raised the petroleum levy on petrol by Rs55.24 per litre, pushing it to Rs160.61 per litre from its previous level of Rs105.37.
Within 24 hours, the government reversed course and reduced the levy on petrol by Rs80 per litre, bringing it back down to Rs80.61 per litre with immediate effect.
On 8 May 2026, the levy on petrol was raised again to a record Rs117.05 per litre, before being revised downward to Rs108.17 per litre in the subsequent fortnightly adjustment.
