Petroleum levy collection hits record Rs1.57tr

According to Dawn, the Ministry of Finance's annual fiscal report for FY26 shows petroleum levy collection hit a record Rs1.567 trillion, up 29 per cent from Rs1.22 trillion. The sum also topped the initial budget goal of Rs1.468 trillion, a figure raised to Rs1.498 trillion during the FY27 budget process. The record came as consumer oil prices reached new highs following US-Israel strikes on Iran.

Running costs of the civil government climbed 16 per cent to Rs1.033 trillion, crossing Rs1 trillion for the first time despite restructuring and austerity. Defence spending rose 18 per cent to Rs2.588 trillion, only Rs38 billion above the Rs2.55 trillion allocation. Meanwhile, the fiscal deficit narrowed to 2.6 per cent of GDP, its lowest level since FY03 on comparable data.

Interest payments dropped to Rs6.947 trillion from Rs8.887 trillion, while the provinces delivered a record Rs1.45 trillion cash surplus to the Centre. The statistical discrepancy also hit a record Rs853 billion, with the finance ministry attributing Rs448 billion to federal under-reporting and Rs405 billion to provinces. The primary surplus reached 2.9 per cent of GDP, the highest since FY20.