Pakistan will raise its Petroleum Development Levy (PDL) to over Rs100 per litre on petrol and diesel in coming fiscal year starting July 2025. This development comes up after the series of meetings with IMF regarding preparation of budget 2025-2026 and ways on curbing the cicular debt.
The Petroleum Development Levy (PDL), currently stands at Rs78/liter on petrol and Rs77 on diesel, is being increased as part of GOP’s strategy to boost non-tax revenues. It should be noted that the PDL goes directly towards the federal government’s kitty and the amount does not need to be shared with the provinces under the NFC award. The plan is central to Pakistan’s commitment to tighten its fiscal position under the IMF’s Extended Fund Facility (EFF),
The PDL was last increased in July 2024 from Rs 60 to Rs 80 and it looks to increase further this year. The government is able to increase the PDL due to the low international oil prices. The near term outlook is bearish regarding oil prices so this gives the government cushion to jack up its revenues.
This also shows that the government is in no mood to lower petrol and diesel prices for the common man in the near to medium term.