New data released by Pakistan’s Ministry of Finance indicates a significant boost in government revenue, with the total tax collection reaching PKR 3,046 billion in the first quarter (July to September) of the current fiscal year 2025-26. This performance nearly matches the PKR 3,051 billion non-tax revenue collected during the same period last year, although the government has set an ambitious overall non-tax revenue target of PKR 5,147 billion for the full year.
The details released by the Ministry of Finance highlight the revenue sources outside of direct taxation, revealing where the government has focused its collection efforts.
Increased Burden from Petroleum Levy: A key finding in the report is the substantial increase of approximately PKR 110 billion in revenue generated from the Petroleum Levy. From July to September, the government recorded a total collection of PKR 371.60 billion under this head, a sharp rise compared to the PKR 261.68 billion collected in the corresponding period last year. This figure underscores the direct financial pressure placed on consumers.
Other significant collections reported include:
- State Bank Profit: The profit transferred from the State Bank of Pakistan (SBP) amounted to PKR 2,428 billion during the first quarter.
- Fees and Surcharges: PKR 14 billion was collected through passport fees, and PKR 7.94 billion under the gas surcharge.
- Markup: Provincial and federal government institutions collected markups exceeding PKR 27 billion, alongside revenues from oil and gas royalties and the Gas Development Surcharge.
The government’s strategy, heavily reliant on high collections from sources like the Petroleum Levy and various surcharges, demonstrates an effort toward achieving fiscal stability. However, it simultaneously raises concerns about inflationary pressures and when citizens might see relief from the constant financial burden.
