Karachi, December 22, 2025 – The Federal Board of Revenue (FBR) has recorded a significant 92 percent increase in tax collection from new car manufacturing in Pakistan during November 2025, compared to the same month last year, reflecting a strong recovery in the auto sector.
According to official data released by an FBR field office in Karachi, advance tax collected from new car manufacturing stood at Rs550 million in November 2025, up sharply from Rs290 million in November 2024. FBR officials attributed this substantial rise to increased production and sales activity by local automobile manufacturers during the period.
Figures from the Pakistan Automotive Manufacturers Association (PAMA) further support this upward trend. Car sales reached 15,442 units in November 2025, compared to 10,163 units in the corresponding month of the previous year, marking a robust growth of 52 percent.
On a cumulative basis, the FBR’s Karachi field office reported a 76 percent increase in tax collection from new car manufacturing during the first five months (July–November) of the ongoing fiscal year 2025-26. Tax receipts rose to Rs2.45 billion, compared with Rs1.40 billion collected during the same period of the last fiscal year.
Meanwhile, car sales during July–November 2025-26 surged by 48 percent to 75,042 units, highlighting sustained momentum in the automotive industry. Industry experts link this growth to the entry of new players in the market, relatively lower interest rates, easing inflationary pressures, and improving overall macroeconomic conditions.
The strong performance suggests that tax revenue from car manufacturing is likely to continue rising in the remaining months of the current fiscal year, providing a positive outlook for both the auto industry and government revenue collections.