The Federal Board of Revenue (FBR) has recorded a significant increase in tax collections, with higher receipts from the General Sales Tax (GST) and Federal Excise Duty (FED) contributing to stronger revenue performance during the 2025-26 fiscal year.
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According to official figures, the FBR collected Rs329 billion through GST and Federal Excise Duty during FY2025-26, compared with Rs284 billion in the previous fiscal year. The increase represents an additional Rs45 billion in revenue, reflecting improved tax collection and stronger receipts from indirect taxes.
Government officials confirmed that the rise in collections was driven by higher revenue generated under the two major tax heads. The additional receipts are expected to support the government’s fiscal targets and strengthen overall revenue mobilisation efforts.
Officials told The News that the estimated increase of around Rs45 billion demonstrates improved tax performance compared to FY2024-25. The latest figures also indicate that indirect taxes continue to play a key role in Pakistan’s revenue collection strategy.
Overall, the FBR’s total tax collections have reached Rs357 billion, marking an increase of Rs42 billion compared with the same period last year. The growth comes as the government continues implementing tax reforms aimed at broadening the tax base, improving compliance and enhancing revenue generation.
The increase in GST and excise duty collections is expected to provide additional fiscal space for the government as it seeks to manage public finances, meet development spending requirements and comply with broader economic reform commitments.
The FBR has introduced several measures in recent years to improve tax administration, including greater digitalisation, stricter enforcement against tax evasion and enhanced monitoring of taxable transactions. Authorities believe these initiatives have contributed to stronger revenue performance.
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Economic analysts say sustained growth in tax collections will remain essential for reducing Pakistan’s fiscal deficit and improving economic stability. They note that continued reforms, combined with broader documentation of the economy, will be critical to maintaining revenue growth in the coming years.