Karachi, February 9, 2025 – The collection of petroleum levy has witnessed a substantial increase, reaching Rs 549 billion during the first half (July – December) of the current fiscal year, according to data released by the Ministry of Finance.
This rise in petroleum levy revenue marks a 16% growth compared to Rs 473 billion collected in the same period last fiscal year.
The petroleum levy remains a critical component of non-tax revenue for the government, helping to bridge fiscal deficits. The consistent imposition of petroleum levies on key petroleum products has allowed the government to generate significant funds for budget financing. However, this increase has also resulted in a financial strain on consumers, as petroleum product prices remain a key driver of inflation.
To meet its revenue targets, the government has maintained a strong focus on petroleum levy collection. This strategy has proven effective in bolstering state earnings, though it continues to spark debate over its impact on affordability and overall economic stability. The rising petroleum prices, coupled with higher levies, have led to increased fuel costs, affecting industries and households alike.
In other revenue components, mark-up income for the government saw a drastic decline, dropping to Rs 83 billion during the first half of the current fiscal year, compared to Rs 202.62 billion in the same period last year. However, the government’s dividend income from state-owned enterprises increased significantly, rising to Rs 97.48 billion from Rs 50.46 billion.
A notable increase has been observed in the profit of the State Bank of Pakistan (SBP), which surged to Rs 2500 billion in the first half of the current fiscal year, compared to Rs 972 billion during the same period last year. Meanwhile, the government collected Rs 39.54 billion in passport fees during July – December of FY25, up from Rs 25.74 billion in the corresponding period last year.
Additionally, royalty earnings from oil and gas experienced an upward trend, surging to Rs 96.69 billion in the first half of FY25, compared to Rs 87.46 billion in the same period of the previous fiscal year. The steady rise in petroleum-related revenues underscores the sector’s pivotal role in the country’s financial landscape, balancing economic pressures with fiscal sustainability.