“Pak revenue” is how millions of Pakistanis search for the same question: how much money does the government actually bring in, and where does it come from? The short version — the FBR’s record Rs13 trillion tax haul — is only part of the answer. Trillions more arrive as non-tax revenue, and how the total is divided between Islamabad and the provinces decides what gets built, paid and borrowed. Here is the full picture.
Quick answer: Pakistan’s revenue has two streams: FBR tax collection (a record Rs13 trillion net in FY2025-26) and non-tax revenue led by State Bank profits (Rs2.43 trillion) and the petroleum levy (Rs1.21 trillion). After transfers to provinces under the NFC Award, the federation keeps the remainder for debt servicing, defence and running the state — and the FY2026-27 target has been set above Rs15 trillion.
In this guide: The two revenue streams · Non-tax revenue decoded · The NFC Award split · The road to Rs15 trillion · FAQs · Related guides
Pakistan’s Two Revenue Streams
Federal revenue arrives through two channels. Tax revenue, collected by the FBR, is the larger: Rs13.6 trillion gross in FY2025-26, Rs13 trillion net after refunds — built from income tax (Rs6.58 trillion), sales tax (Rs4.26 trillion), customs duty (Rs1.33 trillion) and federal excise duty (Rs840 billion) (taxationpk.com). Non-tax revenue is the second channel, and it is bigger than most people realise: Rs4.43 trillion in just the first nine months of FY2025-26 (federal fiscal operations data).
Together they form gross revenue receipts — Rs13.73 trillion in July–March FY2025-26. That is the real scale of “Pak revenue”: not just the FBR headline, but everything the federal government takes in. Our complete Pakistan revenue guide tracks both streams in detail.
Non-Tax Revenue, Decoded
Three heads dominate non-tax revenue:
- State Bank surplus profit — Rs2.43 trillion (July–March FY2025-26). When the SBP earns more than it needs — largely interest on government securities — the surplus is handed to the exchequer. It is the single biggest non-tax head, though it swings with interest rates.
- Petroleum levy — Rs1.21 trillion in nine months. Charged on petrol and diesel, it is technically non-tax revenue, as the government confirmed to a National Assembly committee (Feature Pakistan). Every fuel-price notification moves this number.
- Dividends, royalties and fees — profits from state enterprises, oil and gas royalties, passport fees, regulatory surpluses, plus newer heads like the carbon levy and the NEV adoption levy on vehicles.
The budget for FY2025-26 had projected non-tax revenue of Rs5.14 trillion for the full year (ecomnews.pk) — a reminder that Islamabad increasingly leans on this stream to close the fiscal gap without raising taxes.
The NFC Award: How Revenue Is Split
Collecting revenue is only half the story; the National Finance Commission (NFC) Award decides who spends it. The bulk of FBR taxes goes into the Federal Divisible Pool, which is divided between the federation and the four provinces under the award’s formula. In July–March FY2025-26, Rs5.63 trillion was transferred to the provinces — leaving the federal government with net revenue receipts of Rs8.10 trillion.
This is why FBR performance is a provincial concern, not just a federal one: when collection misses its target, provincial budgets for schools, hospitals and development feel it first. And what the federation keeps is largely pre-committed — markup (interest) payments alone absorbed Rs4.95 trillion in the same period, with defence at Rs1.69 trillion (federal fiscal operations data).
The Road to Rs15 Trillion
The next milestone is already set. For FY2026-27 the FBR carries an assigned target of Rs14.264 trillion, and Prime Minister Shehbaz Sharif has publicly pushed the goal above Rs15 trillion, congratulating the authority on its record FY2025-26 performance and crediting reforms, digitisation and institutional coordination (news.taxationpk.com). Hitting it will require the enforcement machinery — AI cross-checks of returns, retailer documentation and new measures in the Finance Bill 2026 — to deliver again, because the IMF’s revenue benchmarks leave little room for another downward revision.
Frequently Asked Questions
What is meant by Pak revenue?
It refers to the federal government’s total income — FBR tax collection plus non-tax revenue such as State Bank profits and the petroleum levy. In FY2025-26, FBR tax revenue alone was a record Rs13 trillion net.
What is non-tax revenue in Pakistan?
Income the government earns outside taxation: State Bank surplus profits, the petroleum levy, dividends from state enterprises, oil and gas royalties, and fees. It totalled Rs4.43 trillion in July–March FY2025-26.
How is revenue shared between the federation and provinces?
Under the NFC Award, most FBR taxes enter the Federal Divisible Pool and are distributed to provinces by an agreed formula — Rs5.63 trillion was transferred in the first nine months of FY2025-26.
What is the petroleum levy, and is it a tax?
The petroleum levy is charged on petrol and diesel and is officially classified as non-tax revenue, as the government confirmed to a National Assembly committee. It yielded Rs1.21 trillion in nine months of FY2025-26.
Related Guides
- Pakistan Revenue: The Complete Guide — the pillar page: tax heads, trends and spending
- How the FBR Raises Rs13 Trillion — the collection machinery and what it means for taxpayers
- Petroleum Levy Is Non-Tax Revenue, Govt Tells NA Panel
- Budget 2026-27: What Was Announced
