Petroleum consumers in Pakistan will have to pay a Rs2.50 per litre climate levy starting from the new fiscal year on July 1, 2025.
According to details, the federal government has imposed the climate levy on petroleum products, which will come into effect from the first day of next month.
The climate levy is set to double to Rs5 per litre in the 2026-27 fiscal year.
Officials say the primary objective of this levy is to generate funds to combat climate change, with all proceeds earmarked for green energy projects and environmental sustainability initiatives across the country.
Experts view this move as part of Pakistan’s broader efforts to align with global green finance standards, positioning itself among developing nations taking serious climate action.
Environmental economists argue that if implemented transparently, the levy can boost Pakistan’s credibility on the international stage and open doors for further climate-related foreign funding.
On the other hand, it is said that the levy will further increase petroleum prices in the country, which will, in turn, raise the prices of essential items and lead to higher inflation for the public.
