ISLAMABAD: Pakistan’s booming stock market has delivered an extraordinary windfall to the national exchequer, with Capital Gain Tax (CGT) collections soaring 559% in the first quarter (July–September) of FY2025–26, official data shows.
According to sources within the Federal Board of Revenue (FBR), CGT receipts skyrocketed to Rs62 billion during 1QFY26, compared to just Rs9.4 billion in the same period last year — a surge attributed to the historic bull run at the Pakistan Stock Exchange (PSX).
The PSX recorded remarkable gains as the KSE-100 Index opened at 125,627 points on July 1, 2025, and closed at 165,493 points by September 30, 2025, reflecting a period of intense investor optimism and record trading volumes.
Market analysts said the massive jump in CGT collection was driven by heightened trading activity and widespread profit-taking amid the rally. “It’s a perfect convergence of investor confidence, liquidity, and economic stability,” said one analyst, noting that stronger corporate earnings, improved macroeconomic indicators, and positive IMF reviews helped sustain the market’s bullish momentum.
On a year-on-year basis, the KSE-100 Index has surged over 104%, doubling from 81,114 points in September 2024, making Pakistan one of the best-performing stock markets globally.
The National Clearing Company of Pakistan Limited (NCCPL), acting as FBR’s withholding agent, collects CGT under Section 37A of the Income Tax Ordinance, 2001, through an automated deduction and deposit system for stock market transactions.
In September 2025 alone, CGT collection soared 500% to Rs6 billion, compared to Rs1 billion in the same month last year — marking yet another milestone in Pakistan’s capital market performance.
Experts predict that if current trends persist, Pakistan’s capital markets could continue to generate record-breaking tax revenues in the coming quarters, reinforcing fiscal stability and investor confidence.
