Islamabad, October 26, 2026 — Pakistan has granted tax exemptions and concessions worth more than Rs11,000 billion over the past five years, highlighting the scale of tax relief provided to various sectors of the economy and the challenges facing the government in expanding its revenue base.
According to figures reported in Pakistan’s Economic Surveys, the cost of tax exemptions has fluctuated considerably in recent years. These concessions include exemptions from income tax, sales tax and customs duties, as well as reduced tax rates and other preferential treatments for selected industries, businesses and groups.
The government reported tax exemptions of Rs2.353 trillion for fiscal year 2025-26, down 3.37 per cent from the revised figure of Rs2.434 trillion for the preceding fiscal year. The decline marked a reversal after several years of increases in the reported cost of tax concessions.
