The federal government collected Rs. 549.41 billion in petroleum development levy (PDL) during the first half of the 2024-25 fiscal year. This marks the highest-ever collection for this period in any fiscal year, reflecting a significant increase in revenue generation from petroleum products. Official records indicate a rise of Rs. 76.64 billion compared to Rs. 472.77 billion collected during the same period last year.
The government has set an ambitious petroleum levy target of Rs. 1.281 trillion for the current fiscal year, which, if achieved, will be the highest in Pakistan’s history. For comparison, the levy collection stood at Rs. 1.019 trillion in 2023-24 and Rs. 580 billion in 2022-23, highlighting a consistent upward trend in revenue from this sector.
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Currently, a PDL of Rs. 60 per liter is imposed on both petrol and high-speed diesel. This high rate, combined with increased petroleum consumption, has contributed to the record-breaking revenue in the first half of the fiscal year. The levy serves as a crucial source of non-tax revenue for the government, helping to bridge budget deficits.
The government’s ability to meet its Rs. 1.281 trillion target will be pivotal in determining the fiscal balance for 2024-25. With petroleum products playing a critical role in the economy, the rising levy collections underline the importance of effective management and pricing policies in the energy sector.
