Pakistan 'submits' five-year-petroleum levy collection plan to IMF

ISLAMABAD:  Pakistan has submitted its projections for petroleum development levy collections over the next five years to the International Monetary Fund (IMF), ARY News reported on Thursday, citing sources.

According to the submitted documents, the climate support levy will also increase by Rs2.5 per liter starting July 1, 2026.

The IMF report includes year-on-year estimates of petroleum levy collections.

For the current fiscal year, collections are projected at Rs1,468 billion, while for the next fiscal year, the estimate stands at Rs 1,638 billion. Projections for the fiscal year 2027-28 are Rs1,787 billion, 2028-29 at Rs1,989 billion, and 2029-30 at Rs2,212 billion.

Historical data included in the report shows that petroleum levy collections stood at Rs1,220 billion in the previous fiscal year, Rs1,019 billion in 2023-24, and Rs580 billion in 2022-23.

The documents further note that the current levy on petrol is Rs 79.62 per liter, while high-speed diesel carries a levy of Rs 75.41 per liter. The climate support levy of Rs2.5 per liter is applied separately to both petrol and diesel.

These projections reflect the government’s plans to maintain fiscal revenue from petroleum while addressing climate-related initiatives through the additional levy.

In the last fortnight review, the government of Pakistan has issued a notification announcing changes in petrol prices and other petroleum products.

According to the notification, the government has announced new petroleum prices, keeping petrol unchanged at Rs263.45 per litre while reducing high-speed diesel by Rs14 to Rs265.65 per litre.