Karachi, January 2, 2024 – JS Global Research analysts have projected petroleum levy collection to reach Rs 486 billion during the first half (July – December) of the fiscal year 2023-24.
This projection suggests a significant increase compared to the previous fiscal year’s collection during the same period.
The government of Pakistan has set an ambitious collection target of Rs 869 billion under the head of petroleum levy for the fiscal year 2023-24. According to the latest analysis, the government has successfully collected nearly 56% of the targeted amount, indicating robust performance in revenue generation through this channel.
During the first half of the fiscal year 2022-23, the collection of petroleum levy amounted to Rs 281.8 billion. The substantial growth of 72.53% in the projected collection for the first half of the current fiscal year underscores the government’s effective revenue management strategies in this critical sector.
Petroleum levy stands out as a major source of non-tax revenue for the government, playing a pivotal role in meeting fiscal deficit targets. The funds generated through this levy contribute significantly to the country’s financial stability and support various government initiatives.
As Pakistan awaits the IMF Executive Board meeting scheduled for January 11, 2024, where the next tranche of $700 million is under consideration, the positive performance in petroleum levy collection is expected to bolster confidence. The successful collection of a substantial portion of the targeted amount reflects positively on the country’s commitment to meeting its economic and fiscal obligations.
The IMF tranche, if approved, will provide further financial support to Pakistan, assisting in managing its balance of payments and facilitating ongoing economic reforms. The petroleum levy collection’s positive trajectory aligns with the broader efforts to strengthen the country’s economic resilience and navigate challenges posed by global economic dynamics.
The effective management of revenue streams, especially in critical sectors like the petroleum industry, contributes to the overall economic stability of Pakistan. Analysts and policymakers will continue to closely monitor these developments, acknowledging the role of revenue generation in sustaining the country’s economic growth and stability.
