KARACHI, April 21, 2026 — The Federal Board of Revenue (FBR) has recorded a sharp increase in revenue from capital gains tax during the first nine months of fiscal year 2025–26, driven by strong trading activity at the Pakistan Stock Exchange.
The FBR collected Rs101 billion in capital gains tax between July and March, compared with Rs24.27 billion in the same period last year, marking a steep rise of 317%.
Officials attributed the surge to robust performance in equities, as the Pakistan Stock Exchange touched multiple record highs during the period, encouraging higher trading volumes and increased investor participation.
Tax officials said buoyant market sentiment, improved liquidity conditions, and strong corporate earnings contributed to sustained momentum in equities, which in turn boosted tax receipts from securities transactions.
In March 2026 alone, capital gains tax collection rose 45% year-on-year to Rs8 billion, compared with Rs5.53 billion in March 2025. Officials noted that despite heightened global volatility triggered by geopolitical tensions, including developments involving Iran and the United States, domestic market activity remained resilient.
Analysts said the performance highlights the sensitivity of tax revenues to stock market cycles, with gains heavily dependent on trading intensity and capital appreciation in listed securities.
Capital gains tax is levied on profits from the sale of securities listed on the stock exchange under Sections 37A and 147(5B) of the Income Tax Ordinance, 2001. The tax structure is designed to capture income generated from equity investments while encouraging formal market participation.
The sharp increase in collections is expected to provide a temporary boost to overall non-tax revenue performance, although analysts caution that sustainability will depend on continued market stability and investor confidence in the coming quarters.