Pakistan’s federal government collected more than Rs13 trillion in taxes and levies during fiscal year 2025, accounting for approximately 11.3 percent of the country’s Gross Domestic Product, official data showed.
Authorities indicated that tax collection trends suggest the federal government is on track to achieve its long-term target of raising revenue to 15 percent of GDP by June 2028. Experts said this would strengthen fiscal stability.
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Adviser to the Finance Minister Khurram Shehzad highlighted that provincial governments must modernize their tax systems to align with federal reforms and tap into untapped revenue potential in services, agriculture, and other sectors.
Provincial contributions remain relatively low, collectively accounting for just 0.85 percent of GDP, reflecting a gap between potential and actual tax collection. Coordinated efforts between federal and provincial authorities are needed for balanced reforms.
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Khurram Shehzad described the collection of over Rs13 trillion as an encouraging step, adding that improving tax compliance and expanding the revenue base is key to enhancing fiscal resilience and public services.
Officials emphasized that sustained reforms and better coordination at all levels can help Pakistan meet future revenue targets while ensuring a fair and efficient tax system that supports economic growth.