Petroleum levy collection hits record Rs1.57tr
• Cost of running civil govt rises 16pc, crosses Rs1tr for first time • Fiscal deficit shrinks to 2.6pc on the back of provincial surpluses, lower interest bill • Defence spending up 18pc; primary surplus reaches record 2.9pc of GDP ISLAMABAD: With a record Rs1.567 trillion petroleum levy collection amid record consumer-end oil prices following US-Israel attacks on Iran, the cost of running the…
In the fiscal year 2025-26, Pakistan's government collected record revenue from petroleum levies, amounting to Rs1.567 trillion. This surge in petroleum levy collection, which increased by 29 percent from the previous year, occurred against the backdrop of record consumer oil prices following US-Israel attacks on Iran. The government's expenditure on running the civil government rose 16 percent to Rs1.033 trillion, breaking the Rs1 trillion mark for the first time despite restructuring and austerity measures.
Despite this, the fiscal deficit contracted to 2.6 percent of GDP, the lowest level since FY03, and the primary surplus reached a record 2.9 percent of GDP, the highest since the government started reporting the indicator in FY20. The government's revenue collection fell marginally to 15.6 percent of GDP from 15.7 percent in the previous year, but provincial cash surplus and lower interest payments helped offset the shortfall.
The primary account turned surplus for the first time in FY26, with a surplus of 0.9 percent of GDP. The four provinces contributed a record Rs1.45 trillion towards the federal government's cash surplus, while defence expenditure rose 18 percent.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
