A strong performance at the Pakistan Stock Exchange (PSX) helped the Federal Board of Revenue (FBR) collect nearly Rs109 billion in Capital Gains Tax (CGT) during the first 10 months of fiscal year 2025–26, according to official sources.
Sources within the FBR said CGT collected on the disposal of securities surged by 263% during July–April FY26 compared to Rs30 billion collected during the same period of the previous fiscal year.
The sharp increase in tax collection reflects the bullish trend witnessed at the Pakistan Stock Exchange over the past year. Improved investor confidence, higher trading activity, and positive market sentiment contributed significantly to the rise in equity market transactions.
Market participants noted that despite global uncertainty and geopolitical tensions, including the impact of US-Israel strikes on Iran earlier in 2026, the PSX remained relatively stable and avoided any major market crash.
In April 2026 alone, Capital Gains Tax collection increased by 33% year-on-year to Rs7.54 billion, compared to Rs5.70 billion recorded in April last year.
Officials said the tax is being collected under Section 37A and Section 147(5B) of the Income Tax Ordinance, 2001.
Analysts believe continued bullish momentum at the Pakistan Stock Exchange could further strengthen government revenues by expanding the tax base and increasing fiscal inflows.
Market experts also expressed optimism that improving macroeconomic indicators and positive diplomatic developments may continue supporting investor confidence and stock market growth in the coming months.
The significant increase in CGT collection comes as Pakistan intensifies efforts to improve revenue mobilisation and meet fiscal targets under ongoing economic reform measures.
