Govt Forms Budget Committee to Collect Rs. 72 Billion From Petrol Companies As Punishment

The federal government has constituted a high-level committee to review major budgetary issues and prepare recommendations for Prime Minister Shehbaz Sharif ahead of the announcement of the FY2026-27 federal budget.

Among the key issues under review is the existing cross-subsidy financing mechanism managed by the Petroleum Division. The committee will also examine the possibility of recovering Rs. 72 billion in windfall gains from oil marketing companies.

According to a notification issued by the Ministry of Finance, the committee was formed on the directives of the Prime Minister’s Office and will be headed by Finance Minister Muhammad Aurangzeb.

The body also includes the ministers for economic affairs, planning and law, along with PMDU Chief Technical Advisor Musharraf Rasool and senior finance officials.

The committee has been tasked with reviewing the financial and operational requirements of key ministries, including commerce, power, privatization, and information technology.

It will also assess the performance of these ministries and recommend Public Sector Development Program allocations for FY27 based on performance, strategic importance and alignment with national priorities.

The panel has additionally been asked to review litigation involving the Power Division in international courts and recommend expenditure priorities for cases considered likely to succeed.

Another major task involves developing a legal framework that would allow revenue-generating ministries and divisions to retain a portion of their earnings for operational and development expenditures.

The committee will also review the use of Climate Support Levy funds for startups under the Green Initiative Program and examine the rationalization of salaries for Tenure Track System faculty members.

The government has further directed ministries and divisions to submit progress reports on rightsizing measures implemented during FY26 and provide fresh proposals aimed at reducing government expenditures in the upcoming fiscal year.