Federal Finance Minister Muhammad Aurangzeb and FBR Chairman Rashid Langrial said Pakistan’s tax collection has improved sharply over the past two years, with total revenue expected to reach $46.4 billion by June 2026.
Addressing a press conference on the National Economic Survey 2025-26, officials said the country’s GDP volume has reached $450 billion, the highest in Pakistan’s history.
Langrial said tax collection stood at $32.6 billion in June 2024 and rose to $41.9 billion in June 2025. He said total revenue collection is expected to reach $46.4 billion by June 2026.
According to the FBR chairman, revenue collection has increased by $14 billion between 2024 and 2026, showing an improvement of around 40% in two years.
Langrial said FBR sets targets in nominal numbers, which include projections related to growth rate, inflation and the dollar exchange rate. He added that when the government performs well on the exchange rate, the value of imports is also affected.
Finance minister highlights record GDP size
Aurangzeb said Pakistan’s economy has reached $450 billion, calling it the highest GDP volume in the country’s history. He said the government has increased the use of technology in the FBR and removed the culture of recommendations.
Aurangzeb said corruption can only be controlled by minimizing human intervention in tax and administrative systems.
The FBR chairman said several sectors, including what he described as the tobacco mafia, were contributing incorrectly or underreporting. He indicated that reforms and enforcement measures were being strengthened to address leakages in tax collection.
Three institutions closed under right-sizing
The finance minister said the government has closed three institutions as part of its right-sizing agenda. He identified the closed institutions as POSCO, Utility Stores and the Public Works Department.
Aurangzeb said the government provided several packages during the right-sizing process. He said employees’ salaries were not the real issue, arguing that the bigger problem was subsidies.
The finance minister said billions of rupees were being provided to these institutions in subsidies, which were being lost to corruption. He added that the real reason behind closing these institutions was the misuse and corruption linked to subsidies.
Exports decline, but value-added sectors improve
The finance minister said exports have declined, particularly food exports. He said some value-added exports have increased, but overall exports are likely to remain slightly lower than last year.
Aurangzeb said IT exports are expected to reach $4.5 billion. He added that remittances are likely to remain around $41 billion to $42 billion.
Imports may touch $70bn
The finance minister said imports are expected to touch $70 billion due to the rise in petroleum prices. He said the government tried to ensure that there was no shortage of petroleum products in the country.
Aurangzeb said Pakistan’s leadership is making efforts to end the regional conflict. He added that while the conflict has ended, its economic effects are expected to continue until next year.
UAE contributes $1bn in recent remittances
The finance minister said remittances remained a major support for the economy. He said out of $4.2 billion in recent remittance inflows, $1 billion came from the United Arab Emirates.
Aurangzeb said he had a very positive conversation with Khyber Pakhtunkhwa Chief Minister Sohail Afridi a day earlier. He said the KP chief minister assured the federal government of support in securing additional resources.
The finance minister appreciated the Khyber Pakhtunkhwa government and said all provinces were supporting the federal government. He also acknowledged and appreciated KP’s role in the broader economic effort.
Tax exemption data missing
The Economic Survey did not include the chapter on tax exemptions granted to various sectors. Data related to exemptions in income tax, sales tax and customs duty was also missing.
In 2024-25, tax exemptions worth Rs5,840 billion were granted to various sectors. However, data on tax expenditure for the year 2025-26 was not released.
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