The government has confirmed it will not increase the Petroleum Development Levy (PDL), but will pass on the impact of higher oil prices directly to consumers due to ongoing geopolitical tensions in the Middle East.
According to a news report, this announcement was made by the Secretary of Finance during a briefing to the National Assembly Standing Committee on Finance and Revenue, chaired by Naveed Qamar on Monday. The government has set a target to collect Rs1.486 trillion from the PDL for the fiscal year 2025-26.
Finance Minister Muhammad Aurangzeb supported the statement, emphasising the government’s firm stance on the issue. “We are not waiting for a decision to be made. We did this yesterday,” he said, underscoring their decisive approach to the matter.
As global oil prices rise due to the escalating Iran-Israel conflict, former energy minister Omar Ayub Khan warned of the potential disruption in oil supply routes, especially through the Strait of Hormuz. He noted that Iran, as the world’s sixth-largest oil producer, could significantly impact global supply, which would worsen Pakistan’s current account and fiscal deficits.
Finance Minister Aurangzeb confirmed that Prime Minister Shehbaz Sharif had established a high-level committee to assess the situation. The committee, chaired by the finance minister, reviewed the country’s petroleum reserves and pricing in light of the regional tensions. Officials from the Ministry of Finance and the Petroleum Division attended the meeting.
The committee assured that there are no immediate concerns regarding the supply of petroleum products, as the country has sufficient reserves. However, it called for constant monitoring of international developments to assess potential economic impacts. A working group has been formed to track market conditions daily, and the committee will meet weekly to report to the Prime Minister.
