KARACHI: Despite gloomy and uncertain organizational upheaval, the Large Taxpayers Office (LTO) Karachi has hit a new milestone by collecting over Rs 2 trillion in revenue for the fiscal year 2023-24, as of April 30, 2024.
This record-breaking performance comes two months ahead of the fiscal year’s close and amid a backdrop of organizational upheaval within the Federal Board of Revenue (FBR).
Last fiscal year, LTO Karachi reached the Rs 2 trillion mark only by the end of June. However, this year, they have managed to achieve this target significantly earlier, reflecting a robust growth of 28.20% in revenue collection from July to April, compared to Rs 1.56 trillion collected during the same period last year.
The provisional collection figure of Rs 2 trillion was confirmed on the morning of Tuesday, April 30, and insiders expect that the total revenue for the year could climb even higher.
This accomplishment is particularly notable given the recent turbulence within the FBR, following a high-profile reshuffling. Prime Minister Shehbaz Sharif’s decision to assign the top official of the FBR as an officer on special duty (OSD) sparked controversy and discontent within the organization. Additionally, the latest round of transfers and promotions from BS-20 to BS-21 in the Inland Revenue Service (IRS) has caused further dissatisfaction and demoralization among staff.
Despite these internal challenges, the employees of LTO Karachi have demonstrated resilience and commitment, contributing significantly to the national treasury. In April alone, LTO Karachi reported a remarkable monthly more than increase of 35%, collecting Rs 175 billion compared to Rs 130 billion in the same month last year.
The success of LTO Karachi is a critical component of Pakistan’s fiscal strategy, particularly at a time when the country faces numerous economic pressures. Tax revenue plays a fundamental role in funding public services and development projects, and achieving such collection targets early allows the government more flexibility in managing public finances.
Moreover, the impressive performance of LTO Karachi has significant implications for the overall economic stability of Pakistan. It provides a cushion against external shocks and helps in maintaining the country’s financial credibility, which is crucial for attracting foreign investment and securing international financial support.
As the fiscal year progresses, all eyes will be on whether LTO Karachi can maintain this momentum and set a new record for annual revenue collection. Meanwhile, the FBR is urged to address the internal issues and ensure that its workforce is motivated and well-equipped to meet and exceed their targets.
The resilience shown by LTO Karachi not only underscores the dedication of its workforce but also highlights the critical importance of stability and clarity in leadership within key government agencies like the FBR. Moving forward, it will be essential for the FBR to foster a work environment that is both motivating and respectful of its cadre, ensuring that Pakistan continues on its path of economic resilience and growth.
