Govt expects to collect around Rs51bn under CSL, NA told

ISLAMABAD: The National Assembly was informed on Monday that the government expects to collect around Rs51 billion under the Climate Support Levy (CSL) during the current fiscal year, provided the existing levy rates and projected sales of petroleum products remain unchanged.

Responding to a question during the Question Hour session of the House, Minister for Petroleum Ali Pervaiz Malik said the “carbon levy” had been renamed as the “Climate Support Levy” and was imposed from July 1, 2025 on motor spirit (petrol), high-speed diesel and furnace oil under the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961.

He told the House that Rs29.161 billion had been collected under the levy between July 2025 and January 2026, while total collections were projected to reach approximately Rs51 billion by the end of the current fiscal year.

The minister clarified that the Petroleum Division did not have the authority to utilise the funds collected under the levy. He said Pakistan had obtained the IMF’s Resilience and Sustainability Facility to support clean and environmentally friendly energy initiatives.

Ali Pervaiz Malik further said d that the Climate Support Levy was not being used for budgetary support purposes.

Responding to a supplementary question by Hina Rabbani Khar, he said the tax-to-GDP ratio had increased and the levy rate had been fixed at Rs2.50 per litre. He added that the levy had been imposed under the IMF facility and could be utilised by the Ministry of Planning and the Ministry of Climate Change.

Replying to a supplementary question by Asad Qaiser, the minister clarified that no Climate Support Levy had been imposed on gas.

Answering others questions, Minister for Petroleum Ali Pervaiz Malik also told the National Assembly that despite the suspension of LNG imports from Qatar for the past two months, the government ensured uninterrupted gas supply to farmers and the agricultural sector.

He said that implementation of Article 158 of the Constitution was continuing and supplying gas to local domestic consumers remained the government’s top priority.

He informed the House that expansion of the gas network remained restricted; however, as a first step, the issuance of RLNG connections had been started and around 200,000 connections had so far been provided. He added that 36 concession licences had been issued during the past one and a half years.

Ali Pervaiz Malik said difficulties in cargo movement due to the closure of the Strait of Hormuz had affected supplies, adding that the arrival of the first LNG cargo ship in Karachi would improve gas availability. He said gas supply to the fertiliser industry had been ensured, while efforts were also under way to provide uninterrupted gas supply to domestic consumers.

Responding to a supplementary question by Naeema Kishwar Khan, the minister said gas was being supplied within a five-kilometre radius of areas where gas reserves were discovered.

Replying to Abdul Qadir Patel, he said the government had decided during budget preparations to impose an Rs80 levy on petrol and diesel, adding that measures would gradually be taken to reduce the levy.

To another supplementary question by Asad Alam Niazi, the minister said K-Electric was currently being supplied less than 100 MMBTU gas, warning that suspension of gas supply would reduce electricity generation. He added that K-Electric’s levy had been averaged out.

Copyright Business Recorder, 2026