Pakistan has collected Rs37.28 billion in carbon levies during the first nine months of fiscal year 2025-26. The Climate Support Levy, introduced under the Finance Act 2025, applies a tax of Rs2.5 per liter on petrol, high-speed diesel, and furnace oil to discourage fossil fuel consumption. Government plans include doubling this levy to Rs5 per liter in the next fiscal year. While the measure generates significant revenue for climate-related initiatives, economists warn it may increase transportation and energy costs across the country.
