ISLAMABAD: The federal government collected more than Rs1.478 trillion through petroleum levy and climate support levy, helping keep the budget deficit under control during the last fiscal year.
According to official figures, revenue generated from the two levies enabled the government to limit the federal budget deficit to Rs3.34 trillion, equivalent to 2.6% of Gross Domestic Product (GDP), during the first 11 months (July–May) of fiscal year 2025–26.
Under Pakistan’s agreement with the International Monetary Fund (IMF), the provinces generated a combined budget surplus of Rs1.31 trillion during the same period. As a result, the overall fiscal deficit declined to Rs2.03 trillion, or 1.6% of GDP.
For the full fiscal year, the government had set a target to keep the fiscal deficit at 3% of GDP, or approximately Rs3.77 trillion, compared with the revised estimate for the previous fiscal year. The original target had been 3.9% of GDP, or Rs5.03 trillion.
The Ministry of Finance has not yet released the reconciled financial operations data for the fiscal year ending June 30, 2026, stating that the final figures will be compiled and published in the coming weeks.
Official data for the first 11 months show that the government’s non-tax revenue reached Rs4.82 trillion, driven mainly by three major sources: profits transferred by the State Bank of Pakistan (SBP), the petroleum levy, and the climate support levy. The annual target for these three revenue streams was Rs5.14 trillion.
During the July–May period, the government received:
- Rs2.428 trillion in SBP profits,
- Rs1.432 trillion through the petroleum levy, and
- Rs45.97 billion from the climate support levy.
Meanwhile, the Federal Board of Revenue (FBR) collected Rs11.228 trillion in tax revenue during the period.
Official figures also showed that interest payments on public debt rose to Rs6.163 trillion, while the government claimed that 100% of the Public Sector Development Programme (PSDP) funds allocated for the period had been utilized.
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