Pakistan’s non-tax revenue has seen a sharp rise following the Middle East war, driven largely by increased petroleum levy collections.
Officials say higher fuel costs have translated into significant additional revenue for the government.
According to officials from the Ministry of Finance, petroleum levy collection has increased by Rs400 billion compared to the previous fiscal year. This surge has played a key role in strengthening the country’s non-tax revenue amid ongoing economic pressures.
In the last one and a half months alone, an additional Rs180 billion was collected from consumers on petroleum products. March 2026 saw a particularly sharp rise, with an extra Rs226 billion collected compared to the same period last year.
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Separately, reports also indicate an additional Rs52 billion levy was collected in March compared to the previous fiscal year.
From July to mid-April, the government collected a total of Rs1,234 billion in petroleum levy. This figure highlights the growing reliance on fuel-based revenue to meet fiscal targets.
Month-wise breakdown of collections
The data shows consistent monthly inflows throughout the fiscal year. Collections stood at Rs177 billion in July, Rs136 billion in August, and Rs112.85 billion in September.
In October, Rs143.48 billion was collected, followed by Rs148 billion in November and Rs162 billion in December.
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January recorded Rs108.76 billion, while February brought in Rs120.49 billion.
In March, collections reached Rs149 billion, while April has so far contributed Rs38 billion, with some reports indicating Rs141.48 billion for the month overall.
Fiscal targets and economic impact
The total petroleum levy collection target for the current fiscal year exceeds Rs1,468 billion.
The sharp increase in collections reflects the government’s strategy to generate revenue through fuel pricing, particularly amid global energy disruptions linked to the Middle East conflict.
