According to official figures, the federal government collected more than Rs13 trillion in taxes and levies during the fiscal year 2025.
The tax revenue collected by the federal government is equivalent to around 11.3 percent of the country’s gross domestic product. Based on the current pace, federal tax collection is moving towards the target of 15 percent of GDP by June 2028.
Advisor to the Finance Minister Khurram Shehzad said provincial governments need to further strengthen their tax collection systems in line with federal efforts.
He said provincial governments are collectively contributing only 0.85 percent, despite having access to effective tax sources such as services and agriculture.
Khurram Shehzad stressed the need for the federal and provincial governments to jointly strengthen tax collection efforts at all levels through balanced reforms. He described the collection of Rs13 trillion in taxes and levies by the federal government as an encouraging development.