ISLAMABAD — The federal government has collected a staggering Rs. 371 billion in petroleum levy during the first quarter (July–September) of the ongoing fiscal year, marking a sharp increase of 42 percent compared to the same period last year, official documents from the Ministry of Finance reveal.
The data shows that the government generated Rs. 110 billion more in petroleum taxes than it did during the same quarter last year, when collections stood at Rs. 261 billion. This surge in revenue comes as Pakistan continues to align its fiscal policies with conditions set by the International Monetary Fund (IMF).
According to the documents, Pakistan recorded a budget surplus equivalent to 1.6 percent of GDP, while the primary balance stood at 2.7 percent of GDP during the first quarter.
The report further notes that interest payments on loans reached Rs. 1,377 billion, while defense spending totaled Rs. 447 billion. Government revenues for the quarter stood at Rs. 6,200 billion, against total expenditures of Rs. 4,080 billion, reflecting a tight fiscal management strategy amid rising economic pressures.
Between July and September, the government borrowed Rs. 2,119 billion, while the State Bank of Pakistan (SBP) reported profits worth Rs. 2,428 billion for the same period providing a much-needed boost to the national exchequer.
In addition, the government collected Rs. 10 billion under the carbon levy and another Rs. 3 billion from the electric vehicle (EV) adoption levy. Pension payments amounted to Rs. 249 billion, while civil administration expenses totaled Rs. 161 billion, and subsidies stood at Rs. 119 billion.
Documents also highlight that domestic interest payments on loans reached Rs. 1,176 billion during the first quarter.
Under the NFC Award, the federal government transferred Rs. 1,775 billion to the provinces with Punjab receiving Rs. 882 billion, Sindh Rs. 441 billion, Khyber Pakhtunkhwa Rs. 287 billion, and Balochistan Rs. 164 billion.
All four provinces reported budget surpluses during the quarter: Punjab posted Rs. 441 billion, Sindh Rs. 208 billion, KP Rs. 77 billion, and Balochistan Rs. 53 billion indicating a rare instance of provincial fiscal stability amid tightening federal finances.
