The federal government has assured the International Monetary Fund of continued and expanded revenue collection under the petroleum levy framework, as part of its broader fiscal consolidation strategy.

According to official planning documents, authorities have prepared a long-term strategy aimed at generating significant revenue from petroleum-related charges over the next several years, adding a substantial burden on consumers.

Under the proposed plan, the government aims to collect approximately Rs10,780 billion from petroleum levy over the next five years. The total projected burden from 2021 to 2031 is estimated to reach Rs16,273 billion.

For the upcoming fiscal year 2026–27, the collection target has been set at Rs1,727 billion. This figure is expected to rise to Rs1,915 billion in the following year and could reach Rs2,637 billion by 2029–30.

In the previous five years, Pakistan has already collected around Rs4,493 billion under petroleum levies. For the current fiscal year, the target was set at Rs1,468 billion, but collections are expected to reach approximately Rs1,546 billion.

Historical data shows a steady increase in petroleum levy collection: Rs128 billion in 2020–21, Rs580 billion in 2022–23, Rs1,019 billion in 2023–24, and Rs1,220 billion in 2024–25.

Officials indicate that the petroleum levy will remain a key revenue tool, but it is also expected to contribute to inflationary pressure. Any increase in these levies is likely to raise transportation costs and increase prices of essential goods across the country.