ISLAMABAD, June 17, 2025: The federal government has ruled out any increase in the Petroleum Development Levy (PDL), but warned that consumers will have to bear the impact of surging global oil prices triggered by escalating tensions in the Middle East.
The announcement was made during a briefing to the National Assembly Standing Committee on Finance and Revenue, chaired by MNA Naveed Qamar, on Monday. Finance Secretary confirmed that while the government aims to collect Rs1.486 trillion in PDL during FY2025-26, no further hike is planned despite global volatility.
Finance Minister Muhammad Aurangzeb supported the decision, stating, “We have already acted. We’re not waiting for further developments.”
Former Energy Minister Omar Ayub Khan cautioned that the Iran-Israel conflict, especially any disruption in the Strait of Hormuz, could severely affect global oil supply, hike international prices, and worsen Pakistan’s current account and fiscal deficits. “Iran is the sixth-largest oil producer—any disruption will hit us hard,” he warned.
In response, Prime Minister Shehbaz Sharif has constituted a high-level committee, chaired by the finance minister, to monitor the evolving situation. The committee is tasked with evaluating the country’s petroleum reserves and reviewing pricing strategies amid the crisis.
Officials from the Ministry of Finance and Petroleum Division participated in the meeting, where they assessed the potential economic fallout of soaring oil prices on domestic markets.
Story by Sohail Sarfraz | Tahir Amin
