Government Collects Rs. 371 Billion in Petrol Taxes in Q1

The federal government of Pakistan collected Rs. 371 billion in petroleum levies during the first quarter (July–September) of FY2025-26, marking a 42% increase compared to Rs. 261 billion in the same period last year. The additional Rs. 110 billion in collections reflects ongoing compliance with IMF conditions and contributed to a budget surplus of 1.6% of GDP.

According to the Ministry of Finance, total revenues reached Rs. 6,200 billion, while expenditures were Rs. 4,080 billion. Interest payments on loans amounted to Rs. 1,377 billion, and defense spending stood at Rs. 447 billion. Other levies, including the carbon levy (Rs. 10 billion) and EV adoption levy (Rs. 3 billion), also contributed to the fiscal inflows.

A senior finance official commented,

“The strong petroleum levy collection underlines the government’s commitment to fiscal consolidation and adherence to international financial agreements.”

Provincial transfers under the NFC Award totaled Rs. 1,775 billion, with Punjab receiving Rs. 882 billion, Sindh Rs. 441 billion, KP Rs. 287 billion, and Balochistan Rs. 164 billion. All provinces reported budget surpluses in Q1, demonstrating improved fiscal management at both federal and provincial levels.