Pakistan, June 14 -- The federal government will impose a Rs77 per litre petroleum levy and Rs5 per litre carbon levy on petrol, diesel, and furnace oil from July 1, 2025. This decision is part of Pakistan's agreement with the International Monetary Fund (IMF) under the Resilience and Sustainability Facility (RSF) to promote climate resilience and stabilize the economy.

The Ministry of Energy (Petroleum Division) submitted a formal summary to the federal cabinet, requesting urgent approval. These levies are to be legislated through the Finance Bill 2025-26, which must be passed by June 30 to meet IMF conditions. The finance minister had already hinted at these changes during the budget speech.

The carbon levy will initially be Rs2.5 per...