The Disproportionate Tax Burden: Pakistan’s Salaried Class Pays More Tax Than Exporters & Real Estate Combined

Pakistan’s salaried class continues to shoulder a disproportionate share of the country’s economic burden, heavily outperforming major corporate sectors. According to provisional data from the Federal Board of Revenue (FBR) for the fiscal year 2025-26, salaried individuals contributed a record ₨633 billion in income tax, reflecting a sharp increase from the ₨585 billion collected the previous year. This massive contribution stands in stark contrast to other influential sectors traditionally considered the pillars of the economy. During the same period, exporters contributed ₨174 billion, while real estate sellers paid ₨191 billion. Furthermore, property buyers generated ₨87 billion under Section 236K—marking a decline from last year’s ₨120 billion—and the retail sector brought in ₨70 billion via withholding tax. These figures highlight that the heaviest tax compliance falls on regular wage earners whose taxes are deducted directly at the source.

FBR Targets and Strategic Reforms Overall, the FBR concluded the fiscal year with a total collection target of ₨13,010 billion and has set a more ambitious target of ₨15,264 billion for the upcoming fiscal year. To modernize the system and curb corruption, the government has announced a structural shift to eliminate direct contact between tax officials and taxpayers. In a positive move toward economic balance, authorities have also hinted at introducing much-needed tax relief for both the salaried class and exporters in the next fiscal year.

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