ISLAMABAD: The Federal Board of Revenue (FBR) has reported a strong performance in Pakistan’s federal tax collection during fiscal year 2024-25 (FY25), despite regional tensions with India and ongoing conflicts in the Middle East and Europe.
According to FBR’s annual report, FY25 marked a historic year as the country’s total federal tax collection surpassed the Rs11 trillion milestone for the first time. The board collected Rs11,744.3 billion, reflecting a 26.3% year-on-year growth compared to Rs9,299.1 billion in FY24 — a net increase of Rs2.4 trillion, the highest-ever annual addition.
The FBR said the growth was achieved even amid trade disruptions and business uncertainties caused by geopolitical instability. “FY25 will be remembered as a landmark year,” the report stated, adding that despite a downward revision in collection targets due to external shocks, the board achieved 98.7% of the revised goal.
All major tax categories posted double-digit growth. Federal Excise Duty (FED) collection jumped 32.7%, Direct Taxes rose 27.8%, Sales Tax climbed 26.4%, and Customs Duty increased 16.3%. Direct taxes contributed the largest share — Rs5,791.7 billion or 49.3% of total receipts — followed by sales tax at Rs3,901 billion (33.2%).
The FBR highlighted that the revenue performance was largely driven by Pakistan’s service (51%) and industrial (20%) sectors, despite modest growth of 8.51% and 7.20%, respectively. Large-scale manufacturing expanded by 3.02%, while fiscal enforcement and policy measures helped sustain momentum throughout the year.
Quarterly analysis showed that revenue growth accelerated steadily — from 25.9% in the first half to 26.7% in the second half — peaking at 27.2% in the final quarter of FY25. The FBR credited this trend to stronger enforcement, compliance drives, and digital reforms.
The report further noted that while the first half of FY25 saw fluctuating monthly trends, growth surged in the latter half, staying above 20% consistently from January to June 2025 — a reflection of stable fiscal management and sustained taxpayer engagement.
