The Petroleum Products sector continued to dominate Pakistan’s customs duty collection during FY 2024-25, according to new data released by the Federal Board of Revenue (FBR). The sector contributed the highest share among all import categories, underscoring its vital role in the country’s revenue stream.
As per the FBR report, Petroleum Products accounted for 22.7 percent of Pakistan’s total customs duty. This translated to approximately Rs. 291 billion out of the total Rs. 1,284.6 billion collected in customs duty during the fiscal year. Despite holding the top position, revenue from petroleum imports saw a 9.1 percent decline, driven by lower import volumes and a drop in global oil prices.
Overall, customs duty collection recorded strong growth. The total revenue increased from Rs. 1,104.1 billion in FY 2023-24 to Rs. 1,284.6 billion in FY 2024-25. This represents a 16.4 percent year-on-year rise, supported by higher dutiable imports and improved collection efficiency.
According to the report, customs duty contributed 10.9 percent to Pakistan’s total tax revenue during the year. The FBR also confirmed that it achieved 95.2 percent of its annual target for customs duty collection, signaling consistent fiscal performance.
After Petroleum Products, the automobile sector emerged as the second-largest contributor, holding a 13.4 percent share of total customs duty. Vehicle imports alone accounted for 41.1 percent of the overall revenue growth, mainly due to higher import values and strong consumer demand.
Experts believe that while Petroleum Products remain a key source of government revenue, the decline in import volumes indicates evolving consumption patterns and the growing focus on energy diversification.
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The latest figures highlight the continued importance of the Petroleum Products sector in sustaining Pakistan’s customs revenue base, even amid global market fluctuations and domestic energy transitions.
