Islamabad: The government of Pakistan has set a target of collecting Rs1,311 billion in petroleum levy in the budget for the financial year 2025-26, which is Rs194 billion more than the target of Rs1,117 billion in the previous financial year. This increase is being done to fulfill the commitments made to the International Monetary Fund (IMF).
Currently, Pakistan levies Rs78.02 per liter on petrol and Rs77.01 on high-speed diesel. The new budget proposes to increase this levy to Rs100 per liter, which will be the highest in the country’s history.
This increase will not only lead to an increase in the prices of petroleum products but is also expected to significantly increase inflation, which will have a direct impact on the people. The prices of daily necessities will increase, and the financial pressure on the middle class will increase.
The government says the measures are necessary to ensure fiscal stability and meet the terms of the agreement with the IMF. However, economists say the measures could increase public discontent and expose the government to political pressure.
The increase in petroleum levy in the upcoming budget is a major fiscal decision, which will have repercussions on both the economy and the people. The government should assess the potential impact of this decision and take alternative measures to provide relief to the people.
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