Karachi, August 4, 2025 – The Federal Board of Revenue (FBR) has recorded a massive 222% rise in the collection of Capital Gain Tax (CGT) on the sale of securities during the fiscal year 2024-25, reflecting a booming stock market and enhanced investor returns.
According to official figures, the CGT collection from the sale of securities reached Rs49 billion in FY25, up from Rs15 billion in FY24. This remarkable growth has been largely attributed to the extraordinary performance of the Pakistan Stock Exchange (PSX) over the past year.
Topline Securities, in its latest report, noted that the KSE-100 index posted a 60% increase in Pakistani rupee terms and 57% in U.S. dollar terms during FY25. Over the two-year period of FY24 and FY25, the PSX has witnessed a cumulative gain of 203% in PKR and 206% in USD. Analysts attribute this rally to improved macroeconomic indicators and investor confidence following Pakistan’s $7 billion loan agreement with the International Monetary Fund (IMF).
The collection of CGT falls under the jurisdiction of the Large Taxpayers Office (LTO) Karachi, FBR’s largest revenue-generating unit. The tax is imposed under Section 37A of the Income Tax Ordinance, 2001, specifically targeting gains from the sale of securities.
In June 2025 alone, CGT collection from securities surged by 327% year-on-year, hitting Rs37 billion compared to just Rs3.05 billion in June 2024, highlighting sustained investor activity and continued tax windfalls for the government.