Large Taxpayers Office Karachi sets historic PKR 3.27 trillion tax collection record in FY25

The Large Taxpayers Office (LTO) Karachi has achieved a historic milestone by collecting PKR 3.27 trillion in taxes during the fiscal year 2024-25 — the highest annual tax collection by any office in Pakistan’s history.

This marks a significant 29% increase over last year’s total of PKR 2.52 trillion.

In a record-breaking finish, the LTO collected PKR 185 billion on June 30 alone, contributing to a total of PKR 450 billion for the month, a 49% surge compared to June 2024. Officials attributed this performance to improved enforcement mechanisms, greater reliance on advanced data analytics, and an intensified focus on high-value taxpayers.

The breakdown of the PKR 3.27 trillion collection includes PKR 1.80 trillion from income tax, representing a 32% increase; PKR 1.24 trillion from sales tax, up 21%; and PKR 222 billion from federal excise duty, marking a 63% rise.

Even after issuing refunds totaling PKR 86 billion, the LTO's net collection remained robust, further cementing its position as the country’s most productive revenue-generating unit.

Tax experts praised the LTO’s performance, describing it as a cornerstone in the modernization of Pakistan’s tax system. “LTO Karachi is now leading the way in modern tax collection,” said a senior economist. “This success not only supports Pakistan’s financial health but also strengthens investor confidence at a time when global lenders like the IMF are closely watching.”

Other economists echoed this sentiment, noting that consistent revenue growth of this magnitude can ease fiscal pressures, reduce the government’s reliance on borrowing, and help stabilize key macroeconomic indicators such as inflation and the current account deficit. Improved revenue generation is also seen as a potential lever for enhancing Pakistan’s credit rating outlook, thus improving access to global capital markets.