Pakistan collected Rs. 1.567 trillion in petroleum levy during the fiscal year ended June 30, exceeding the government’s target by Rs. 99 billion, according to Finance Ministry documents.
The government had set a petroleum levy collection target of Rs. 1.468 trillion for fiscal year 2025-26. The higher-than-target collection, along with lower expenditures, helped Pakistan record a primary surplus of Rs. 3.634 trillion, in line with a key condition under its International Monetary Fund (IMF) program, the documents showed.
The country recorded a budget deficit of Rs. 4.763 trillion during the year, while total tax and nontax revenues stood at Rs. 19.773 trillion.
The Finance Ministry said total government expenditure declined to Rs. 23.087 trillion, equivalent to 18.2% of gross domestic product, from 21.4% of GDP in fiscal 2024-25 and 19.5% in fiscal 2023-24.
Debt servicing remained the largest expenditure item, with Rs. 6.947 trillion spent on interest payments. Of this, Rs. 6.04 trillion was paid on domestic debt and Rs. 917 billion on external debt.
The government spent Rs. 2.587 trillion on defense, Rs. 1.001 trillion on pensions and Rs. 1.013 trillion on subsidies during fiscal 2025-26. It borrowed a net Rs. 3.313 trillion during the year, including Rs. 2.135 trillion from domestic sources. Net external financing amounted to Rs. 1.113 trillion, according to the Finance Ministry.
The central bank generated a profit of Rs. 2.428 trillion during the year, the documents showed.
The federal government transferred Rs. 7.668 trillion to provinces under the National Finance Commission award in the last fiscal year, up from Rs. 6.854 trillion the year prior. Punjab received the largest share at Rs. 3.370 trillion, followed by Sindh with Rs. 1.897 trillion, Khyber-Pakhtunkhwa with Rs. 1.024 trillion and Balochistan with Rs. 736 billion.
The provinces also recorded combined fiscal surpluses. Punjab posted a surplus of Rs. 914 billion, Sindh Rs. 349 billion, Khyber-Pakhtunkhwa Rs. 164 billion and Balochistan Rs. 20 billion, according to the documents.
The Finance Ministry is expected to present these fiscal indicators to the IMF delegation during the fifth review of Pakistan’s economic program next month. The figures indicate that stronger petroleum levy collection, a growing means of revenue generation by the government, and spending restraint played an important role in helping Pakistan meet its primary balance commitment under the IMF-supported program.