The federal government has established a high-level budget committee to examine key fiscal matters ahead of the announcement of Pakistan’s FY2026-27 federal budget, including a proposal to recover Rs. 72 billion in windfall gains from oil marketing companies.

According to an official notification issued by the Ministry of Finance, the committee has been formed under the directives of Prime Minister Shehbaz Sharif and will be chaired by Finance Minister Muhammad Aurangzeb.

One of the major issues under consideration is the existing cross-subsidy financing mechanism managed by the Petroleum Division. The committee will assess the financial impact of the current system and explore possible reforms to improve transparency and revenue management within the petroleum sector.

Officials are also reviewing the possibility of recovering approximately Rs. 72 billion from oil marketing companies in the form of windfall gains. The proposed recovery is being discussed as part of broader efforts to strengthen government revenues and address budgetary pressures ahead of the new fiscal year.

The move comes at a time when Pakistan is facing significant economic challenges, including fiscal deficits, inflationary pressures, and the need for enhanced revenue generation. Analysts believe the government is attempting to widen its financial base while reducing unnecessary subsidies and improving accountability in major industries.

The petroleum sector has remained under close scrutiny in recent years due to fluctuations in international oil prices, subsidy adjustments, and concerns regarding pricing mechanisms. Government officials are expected to evaluate whether oil companies benefited disproportionately from previous pricing policies and market conditions.

Sources indicate that the committee will present detailed recommendations to the prime minister before the federal budget is finalized. These recommendations may influence upcoming taxation measures, subsidy reforms, and petroleum-related financial policies for FY2026-27.

Economic experts suggest that any recovery from oil marketing companies could provide temporary fiscal relief for the government. However, they also warn that policymakers must carefully balance revenue collection efforts with market stability to avoid disruptions in fuel supply chains and consumer pricing.

The federal budget for FY2026-27 is expected to focus heavily on economic stabilization, revenue enhancement, and compliance with broader financial reform objectives. The formation of the new committee signals the government’s intention to closely review financial mechanisms across key sectors before announcing the final budget strategy.