• Official data shows overall tax-to-GDP ratio at 15.7pc in FY25, highest since 2004
• Non-tax revenue up by 68pc

ISLAMABAD: The overall tax-to-GDP ratio increased by a record 3.2 percentage points in fiscal year 2025 to reach 15.7pc — the highest in over two decades.

The record earnings came on the back of heavy taxes imposed by the government to implement strict conditions outlined in the IMF loan programme and last-minute windfalls from non-tax revenue (NTRs).

During FY2024-25, the non-tax revenue grew by 68 per cent against a 26pc growth in tax revenues, indicating the government’s focus remained more on revenue numbers than tax reforms.

According to the fiscal operations data released by the Ministry of Finance on Monday, the tax-to-GDP ratio has hit a 21-year peak of 15.7pc.

The previous high was 18pc in FY04. Since then, the ratio has been faltering between 10 to 15pc, except for........

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