In-focus

Here's how much federal government collected in taxes during FY2025

Here's how much federal government collected in taxes during FY2025

Business

The federal government collected over Rs13 trillion in taxes and levies during FY2025, accounting for around 11.3 percent of Pakistan’s GDP.

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ISLAMABAD (Web Desk) – The federal government collected more than Rs13 trillion in taxes and levies during the fiscal year 2025, according to official data.

The federal tax revenue now stands at approximately 11.3 percent of the country’s Gross Domestic Product (GDP). Based on the current pace of collections, federal authorities are moving toward the target of raising tax revenue to 15 percent of GDP by June 2028.

Adviser to the Finance Minister, Khurram Shehzad, said provincial governments need to strengthen and modernize their tax collection systems in line with federal reforms.

He noted that provincial tax contributions remain significantly low, standing collectively at just 0.85 percent, despite having strong potential revenue sources such as services and agriculture.

Khurram Shehzad emphasized the need for coordinated efforts between the federation and the provinces to introduce balanced reforms and enhance tax collection at all levels.

He described the collection of over Rs13 trillion in taxes and levies by the federal government as an encouraging step toward improving the country’s fiscal stability.