Pakistan Revenue: How the Country Raises Its Trillions
The definitive guide to Pakistan’s public revenue — the FBR’s record Rs13 trillion tax haul, the four tax heads, non-tax income, and where every rupee goes.
Last updated: 11 October 2026
The Essentials
Key Figures at a Glance
Pakistan’s revenue story in six numbers — all from the latest official fiscal data.
The Basics
What “Pakistan Revenue” Actually Means
When Pakistanis search for the country’s revenue, they mean federal government income — and it comes in two very different streams.
Tax revenue is the giant. It is collected by the Federal Board of Revenue (FBR) — Pakistan’s apex tax authority, responsible for income tax, sales tax, federal excise duty and customs duty. In FY2025-26 the FBR’s net collection crossed Rs13 trillion for the first time in the country’s history, after paying out Rs597 billion in refunds (pkrevenue.com).
Non-tax revenue is the quieter second stream: profits handed over by the State Bank of Pakistan, the petroleum levy on fuel, dividends from state enterprises, royalties on oil and gas, passport fees and dozens of smaller heads. In just the first nine months of FY2025-26, non-tax revenue reached Rs4.43 trillion — nearly half the size of FBR collections in the same period (federal fiscal operations data).
Together, the two streams make up gross federal revenue receipts. A large share is then transferred to the provinces, leaving the federal government with net revenue receipts to run the state. For a step-by-step look at how the FBR raises its share, see our guide to how Pakistan’s revenue is collected.
The Collection
The Four Tax Heads Behind Rs13 Trillion
Every rupee the FBR collects arrives under one of four heads. FY2025-26 was the year income tax pulled decisively ahead.
| Tax Head | FY2025-26 Collection | What It Covers |
|---|---|---|
| Income Tax | Rs6,578 billion | Tax on individuals, companies and salaries — now the largest single head |
| Sales Tax | Rs4,262 billion | General sales tax on goods and services at the federal level |
| Customs Duty | Rs1,330 billion | Duties on imports at ports and border stations |
| Federal Excise Duty | Rs840 billion | Excise on cigarettes, cement, beverages, air travel and selected goods |
| Total (net) | Rs13,001 billion | After Rs597 billion in refunds; gross collection was Rs13.6 trillion |
Figures: official FBR data via taxationpk.com. Gross collection Rs13,601 billion; income tax Rs6,645 billion, sales tax Rs4,731 billion, FED Rs840 billion, customs Rs1,385 billion (customstoday.media).
Three things stand out in the FY2025-26 numbers. First, direct taxes have become the engine. Income tax alone contributed more than half of net FBR revenue, and direct taxes overall now account for 48.8 per cent of FBR collections — up from just 39.9 per cent in FY2017 (Economic Survey 2025-26 via pkrevenue.com). Second, the original target was missed even as the revised one was met: the year began with a Rs14.307 trillion target, revised down twice to Rs12.957 trillion, which the FBR then achieved — beating it by about Rs21 billion (etimespakistan.com). Third, refunds matter: nearly Rs600 billion was paid back to taxpayers, mostly exporters, which officials credit with improving business liquidity.
The Trend
Six Years of Revenue Growth
Pakistan’s tax collection has nearly tripled in six years — the fastest sustained revenue expansion in the country’s history.
| Fiscal Year | Target | Actual Collection | Result |
|---|---|---|---|
| FY2020-21 | Rs4.7 trillion | Rs4.7 trillion | Target met |
| FY2021-22 | Rs6.1 trillion | Rs6.1 trillion | Target met |
| FY2022-23 | Rs7.6 trillion | Rs7.2 trillion | Shortfall Rs0.4 trillion |
| FY2023-24 | Rs9.2 trillion | Rs9.3 trillion | Target beaten |
| FY2024-25 | Rs12.3 trillion | Rs11.74 trillion | Shortfall ~Rs0.6 trillion |
| FY2025-26 | Rs12.96 trillion (revised) | Rs13.0 trillion | Revised target met |
Targets and collections: FBR official data via finsmart.pk, taxationpk.com and pkrevenue.com. FY2025-26 figures are net of refunds.
The trajectory is unmistakable: from Rs4.7 trillion in FY2020-21 to Rs13 trillion in FY2025-26, collections have grown roughly 2.8 times in six years. The tax-to-GDP ratio has climbed with it — from 10.3 per cent in FY2024-25 to 10.9 per cent in FY2025-26, according to the Economic Survey. Officials credit stronger enforcement, digitisation of tax administration, AI-driven audits and a broadening tax base for the gains (pkrevenue.com). Critics note the growth leans heavily on the existing formal sector — the salaried class alone paid Rs144 billion in just the first quarter of FY2025-26 (Feature Pakistan).
The Other Stream
Non-Tax Revenue: The Other Trillions
Beyond the FBR, the federal government earns trillions from profits, levies and fees — some of them larger than entire tax heads.
State Bank Profits
The SBP’s surplus profit — Rs2.43 trillion in July–March FY2025-26 — is the single biggest non-tax head, driven by high interest rates on government borrowing.
Petroleum Levy
The levy on petrol and diesel yielded Rs1.21 trillion in nine months. It is classified as non-tax revenue — the government confirmed this to a National Assembly committee (Feature Pakistan).
Dividends & Royalties
Dividends from state enterprises, royalties on oil and gas, passport fees, regulatory surpluses and the new carbon and NEV levies make up the rest.
Non-tax revenue is volatile by nature: SBP profits swing with interest rates, and the petroleum levy moves with fuel prices and consumption. But at Rs4.43 trillion in nine months, it is no footnote — it is roughly a third of gross federal receipts and a critical cushion when tax collection wobbles. For the full breakdown of where the levy money sits in the books, read our explainer on Pak revenue, targets and non-tax income.
The Spending Side
Where the Money Goes
Revenue is only half the story. Here is what happens to it after it reaches Islamabad.
First, the provinces take their share. Under the National Finance Commission (NFC) Award, the bulk of FBR taxes forms the Federal Divisible Pool, distributed among the provinces by an agreed formula. In July–March FY2025-26 alone, Rs5.63 trillion was transferred to the provinces — which is why a missed FBR target immediately squeezes provincial budgets for schools, hospitals and roads.
Then debt eats the largest single bite. Markup (interest) payments on domestic and foreign debt reached Rs4.95 trillion in the same nine-month period — more than total net revenue left with the federation after provincial transfers (Rs8.10 trillion). Defence affairs and services accounted for Rs1.69 trillion, pensions Rs754 billion, and subsidies Rs632 billion (federal fiscal operations, July–March FY2025-26).
The arithmetic explains Pakistan’s fiscal bind: revenue is growing fast, but debt servicing grows faster. That is why every IMF review begins with the same question — will the FBR hit its number? Under the Extended Fund Facility, Pakistan has committed to specific revenue benchmarks, and missing them can delay loan disbursements (finsmart.pk).
Why It Matters
Why Revenue Targets Matter
Revenue targets are not bureaucratic rituals — they decide borrowing, development spending and Pakistan’s standing with lenders.
The IMF Anchor
Pakistan’s IMF programme sets quarterly revenue floors. The FBR’s FY2025-26 shortfall against the original Rs14.3 trillion target was a recurring review talking point.
The Rs15 Trillion Test
For FY2026-27 the FBR has been assigned a target of Rs14.264 trillion — and Prime Minister Shehbaz Sharif has publicly pushed it above Rs15 trillion (news.taxationpk.com).
The Base Challenge
With a 10.9% tax-to-GDP ratio, Pakistan still taxes lightly by regional standards. Digitisation, AI cross-checks of returns against bank and property data (Feature Pakistan) and retailer documentation are the current bets for widening the net.
The Machinery
How the FBR Actually Collects It
Record numbers do not collect themselves. Behind the Rs13 trillion sits a rapidly digitising enforcement machine.
The FBR’s recent gains come from a deliberate shift from manual assessment to data-driven enforcement. Tax returns are now cross-checked against bank transactions, property records and vehicle registrations using AI-assisted systems (Feature Pakistan), while point-of-sale integration pulls retailers into the documented economy. Faceless customs assessment, e-invoicing pilots and a widening withholding net on banking and telecom transactions have steadily closed leakage points.
The other pillar is documentation of new segments: social-media earners on YouTube and TikTok were brought under explicit tax rules in 2026 (Feature Pakistan), and the retailer tax scheme continues beyond 2026. The direction is clear — Pakistan’s revenue future will be built less on raising rates and more on finding taxpayers the old system never saw.
Answers
Frequently Asked Questions
The questions Pakistanis ask most about the country’s revenue — answered.
What is Pakistan’s total revenue?
In FY2025-26, the FBR collected Rs13.6 trillion gross and Rs13 trillion net (after Rs597 billion in refunds) in tax revenue. Adding non-tax revenue — Rs4.43 trillion in the first nine months alone — gross federal receipts are far higher, though a large share is transferred to provinces.
Which tax contributes most to Pakistan’s revenue?
Income tax is now the largest single head, contributing Rs6.58 trillion (net) in FY2025-26 — more than half of FBR collections. Sales tax is second at Rs4.26 trillion, followed by customs duty (Rs1.33 trillion) and federal excise duty (Rs840 billion).
What is the FBR’s revenue target for FY2026-27?
The FBR has been assigned a tax collection target of Rs14.264 trillion for FY2026-27, while Prime Minister Shehbaz Sharif has publicly directed the authority to aim above Rs15 trillion.
What is the difference between tax and non-tax revenue in Pakistan?
Tax revenue is collected by the FBR (income tax, sales tax, customs, excise). Non-tax revenue includes State Bank surplus profits, the petroleum levy, dividends from state enterprises, oil and gas royalties, and government fees.
Where does Pakistan’s tax revenue go?
Most FBR taxes enter the Federal Divisible Pool and are shared with provinces under the NFC Award (Rs5.63 trillion transferred in July–March FY2025-26). What remains with the federation largely goes to debt servicing, defence, pensions and running the government.
What is Pakistan’s tax-to-GDP ratio?
Tax revenue stood at 10.9 per cent of GDP in FY2025-26, up from 10.3 per cent the previous year, according to the Economic Survey of Pakistan 2025-26.
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