Islamabad, February 10, 2026 – Sindh province maintained its position as the largest collector of Sales Tax on Services among Pakistan’s provinces during the first half (July to December) of fiscal year 2025-26, according to data released by the Federal Finance Ministry.
During this period, Sindh collected Rs150 billion in sales tax on services, marking a 22% increase compared with Rs122.88 billion collected in the corresponding half of the previous fiscal year.
Provincial Performance Overview
Collectively, all provinces collected Rs329 billion in sales tax on services during the first half of FY26, reflecting a 26% growth over Rs261 billion collected during the same period of the previous fiscal year.
• Punjab, the second-largest contributor, posted impressive growth of 32.5%, collecting Rs144.63 billion in 1HFY26 compared with Rs109.16 billion last year.
• Khyber Pakhtunkhwa (KP) achieved 27% growth, collecting Rs23.53 billion compared with Rs18.53 billion previously.
• Balochistan showed modest improvement of 1.3%, reaching Rs10.79 billion versus Rs10.65 billion in 1HFY25.
Sales Tax on Services Collection by Province (1HFY26)
| Province | Collection 1HFY26 (Rs Billion) | Collection 1HFY25 (Rs Billion) | Growth (%) |
| Sindh | 150.00 | 122.88 | 22% |
| Punjab | 144.63 | 109.16 | 32.5% |
| Khyber Pakhtunkhwa | 23.53 | 18.53 | 27% |
| Balochistan | 10.79 | 10.65 | 1.3% |
| Total | 329.00 | 261.00 | 26% |
Analysis
The strong performance of Sindh and Punjab highlights the growing contribution of urban and commercial centers to the federal exchequer through service-based taxation. Khyber Pakhtunkhwa’s healthy growth reflects rising economic activities in key sectors, while Balochistan’s modest growth points to the need for broader tax base expansion in the province.
Finance analysts say that continued improvements in tax compliance, digitization of services, and enhanced monitoring are key factors driving growth in sales tax on services collection across provinces.