Karachi, October 27, 2025 – Pakistan’s roaring stock market rally has sent tax revenues soaring, with Capital Gain Tax (CGT) collection jumping by an astonishing 559% in the first quarter (July–September) of FY2025–26, according to official data.
Sources within the Federal Board of Revenue (FBR) revealed that CGT receipts skyrocketed to Rs62 billion during 1QFY26, compared to just Rs9.4 billion in the same period last year — a phenomenal leap driven by a historic bull run at the Pakistan Stock Exchange (PSX).
The PSX witnessed an unprecedented boom as the benchmark KSE-100 Index opened the quarter at 125,627 points on July 1, 2025, and closed at 165,493 points by September 30, 2025, reflecting massive investor optimism and record trading volumes.
Market analysts said the surge in trading activity and profit-booking by investors fueled this explosive growth in CGT collection. “It’s a perfect storm of confidence, liquidity, and economic stability,” remarked one market expert, adding that improved corporate earnings, stable macroeconomic indicators, and positive IMF reviews played a key role in the rally.
In year-on-year terms, the KSE-100 index has surged over 104%, doubling from 81,114 points in September 2024 to its current record close, making it one of the best-performing markets globally.
The National Clearing Company of Pakistan Limited (NCCPL), acting as the withholding agent for the FBR, collects CGT under Section 37A of the Income Tax Ordinance, 2001, ensuring automatic deduction and deposit of tax on stock market gains.
In September 2025 alone, the CGT collection soared 500% to Rs6 billion, compared to Rs1 billion in September 2024, marking yet another milestone in Pakistan’s capital market growth story.
Experts believe that with investor confidence at an all-time high and the PSX maintaining its bullish momentum, the government’s tax revenues are poised for further record-breaking gains in the coming months.