Pakistan’s tax puzzle: 137 million bank accounts, but just 5.9 million tax filers

It’s a paradox that speaks volumes. Pakistan has 137 million unique bank account holders, but just 5.9 million people filed taxes in the fiscal year 2024-25 (FY25) — only 8.4% of the country’s 71 million-strong workforce.

That’s right: over 130 million account holders are essentially off the tax radar, despite sitting inside a banking system that holds PKR 32.7 trillion in deposits and has full KYC data on all its clients.

So why is the tax net still so narrow?

In a tweet that sparked renewed debate, former federal minister Gohar Ejaz pointed out the striking mismatch. In FY25, the Federal Board of Revenue (FBR) has collected PKR 11.9 trillion so far, falling short of its PKR 12.97 trillion target, achieving just 91.7% of the goal (the amount of June is still pending).

It’s not for lack of revenue potential; it’s about where the FBR is looking. Over PKR 1.59 trillion came from withholding taxes and PKR 1.12 trillion through voluntary payments in just the first half of the fiscal year, most of it from the same overburdened 5.9 million taxpayers.

Breakdown of Pakistan’s tax filers in FY25:

• Individuals: 5.8 million
• AOPs (business partnerships): 104,269
• Companies: 87,900

Now stack that against the 137 million unique bank account holders and the picture becomes glaringly clear.

Smart governance demands smart enforcement. And that means identifying large depositors and frequent high-volume transactors who continue to operate outside the formal tax system.

Withholding taxes are a temporary plug, not a sustainable fix. And if Pakistan aims to boost tax revenue from PKR 11.9 trillion to PKR 14.1 trillion in the fiscal year 2025-26 (FY26), the answer isn’t harsher policies on those already contributing but going after the ones who aren’t.

The fix? Broaden the base, not the burden. Especially not on Pakistan’s salaried class, where the former federal minister for commerce and industries called for a cap of 20% maximum tax rate, offering relief where it’s long overdue.

Because in a country where 60% of adults hold bank accounts, but fewer than 1 in 15 file taxes, the problem isn’t invisibility, it’s inaction.