The salaried class has become Pakistan’s largest taxpayer group in the first quarter of the 2025–26 fiscal year, marking a major achievement in national revenue growth. Between July and September 2025, salaried individuals paid a total of Rs. 130 billion in income tax, showing an 18 percent increase compared to Rs. 110 billion during the same period last year.
This growth reflects better tax compliance, stronger digital systems, and greater efficiency within the Federal Board of Revenue (FBR). However, despite this encouraging progress, Pakistan’s total revenue collection still fell short by Rs. 200 billion during the quarter, highlighting continuing economic challenges.
One of the main reasons behind this shortfall was a Rs. 70 billion loss in tax revenue caused by severe floods that disrupted trade and business activities in several regions of the country.
Despite these difficulties, Pakistan received global recognition for its ongoing tax reform efforts. The World Bank praised the nation’s reform agenda as a global success story, appreciating the Finance Ministry and FBR for their institutional reforms, digitization projects, and strategies to expand the tax base.
Experts believe that if these reforms continue, Pakistan could achieve greater fiscal stability, stronger revenue growth, and a more transparent and inclusive tax system in the coming years.
