KARACHI: Karachi has been recognized as the top contributor to Pakistan’s tax revenue for the fiscal year 2024, providing a significant boost to the national economy.
The Federal Board of Revenue (FBR) reported that the city played a crucial role in the country’s total tax collection.
Specifically, Karachi contributed Rs1.36 trillion in income tax, Rs136.3 million in federal excise duty, and over Rs1 trillion in sales tax. This performance surpassed that of other major cities, highlighting Karachi’s status as a vital financial center.
Following Karachi, the Lahore Large Taxpayers Organization (LTO) secured the second position with over Rs1.402 trillion in tax revenues, while the Islamabad LTO ranked third with contributions of Rs1.164 trillion during the same timeframe.
However, the outlook for the new fiscal year 2024-25 is less optimistic. The FBR is facing challenges in meeting its revenue collection targets, with a reported shortfall of Rs386 billion in the first six months of FY25.
The FBR has collected Rs5,623 billion, falling short of the target of Rs6,009 billion.
The government has set an ambitious tax collection goal of Rs12,913 billion for FY25, marking a 40 percent increase from FY24, which now appears to be a daunting task.
Despite these challenges, officials remain hopeful that Karachi’s robust economic activities will continue to support the growth and stability of Pakistan’s economy.
