KARACHI, April 10 – Karachi accounted for 45% of Pakistan’s total direct tax collection in fiscal year 2024-25, underscoring the city’s central role in the country’s revenue generation, according to the annual report released by the Federal Board of Revenue.
The report showed that Inland Revenue field offices in Karachi collectively collected Rs2.54 trillion in direct taxes during FY25, compared with the national total of Rs5.71 trillion. The share marks an increase from 43.73% recorded in the previous fiscal year, reflecting improved tax compliance and economic activity in the country’s financial hub.
Karachi hosts five major Inland Revenue offices, including the Large Taxpayers Office (LTO), Medium Taxpayers Office (MTO), Corporate Tax Office (CTO), Regional Tax Office (RTO)-I and RTO-II. All offices reported notable growth in collections during the fiscal year.
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The LTO Karachi remained the largest contributor, collecting Rs1.8 trillion in FY25, up from Rs1.39 trillion a year earlier. The MTO Karachi collected Rs140 billion, compared with Rs110 billion in FY24, while the CTO Karachi recorded Rs159 billion, rising from Rs129 billion.
Similarly, RTO-I Karachi collected Rs140 billion, up from Rs119 billion, and RTO-II Karachi posted Rs305 billion, compared with Rs233 billion in the previous fiscal year.
Analysts said the increase in Karachi’s share reflects both the concentration of large taxpayers in the city and enhanced enforcement measures by tax authorities. The growth also indicates a gradual recovery in business activity, particularly in key sectors such as banking, manufacturing and services.
The FBR has been focusing on broadening the tax base and improving compliance to meet revenue targets, with Karachi continuing to play a pivotal role in achieving these objectives.
Direct Tax Collection by Karachi Offices (Rs in Billion)
| IR Office | 2024-25 | 2023-24 |
| LTO Karachi | 1,800 | 1,390 |
| MTO Karachi | 140 | 110 |
| CTO Karachi | 159 | 129 |
| RTO-I Karachi | 140 | 119 |
| RTO-II Karachi | 305 | 233 |