KARACHI: Karachi has once again emerged as Pakistan’s largest revenue hub, contributing 45% of the country’s total direct tax collection in fiscal year 2024-25, according to the annual report issued by the Federal Board of Revenue (FBR).
The report reveals that Inland Revenue offices in Karachi collectively generated Rs2.54 trillion in direct taxes, out of the national total of Rs5.71 trillion. This marks an increase from 43.73% in the previous fiscal year, reflecting stronger compliance and improved economic activity in the country’s financial capital.
Karachi hosts five major Inland Revenue formations, including the Large Taxpayers Office Karachi, Medium Taxpayers Office Karachi, Corporate Tax Office Karachi, Regional Tax Office I Karachi, and Regional Tax Office II Karachi—all of which reported notable growth in collections during FY25.
The Large Taxpayers Office Karachi remained the top contributor, collecting Rs1.8 trillion, up from Rs1.39 trillion in FY24. The Medium Taxpayers Office Karachi collected Rs140 billion (up from Rs110 billion), while the Corporate Tax Office Karachi generated Rs159 billion, compared to Rs129 billion last year.
Similarly, Regional Tax Office I Karachi collected Rs140 billion, up from Rs119 billion, and Regional Tax Office II Karachi recorded Rs305 billion, compared to Rs233 billion in the previous fiscal year.
Analysts attribute Karachi’s rising share to the high concentration of large taxpayers, improved enforcement by tax authorities, and a gradual recovery in key sectors such as banking, manufacturing, and services.
The FBR continues to focus on expanding the tax base and enhancing compliance nationwide, with Karachi playing a pivotal role in achieving revenue targets and sustaining fiscal growth.
Direct Tax Collection by Karachi Offices (Rs in Billion)
| IR Office | 2024-25 | 2023-24 |
|---|---|---|
| LTO Karachi | 1,800 | 1,390 |
| MTO Karachi | 140 | 110 |
| CTO Karachi | 159 | 129 |
| RTO-I Karachi | 140 | 119 |
| RTO-II Karachi | 305 | 233 |
