Pakistan tax revenue rises in January as direct taxes drive growth

Men exchange Pakistani banknotes at a shop counter in Peshawar, Pakistan November 17, 2017. (Reuters/File)
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Updated 31 January 2026
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Pakistan tax revenue rises in January as direct taxes drive growth

  • Federal tax collection grows 16% year-on-year at the outset of 2026, led by income tax gains
  • Seven-month revenues reach Rs.7.18 trillion as authorities bank on recovery in manufacturing

ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) on Saturday reported a strong pickup in tax collection in January, driven by a sharp rise in direct taxes, as the government seeks to shore up public finances under a reform-led revenue mobilization drive.

The tax authority collected a provisional Rs1.02 trillion ($3.65 billion) in January, up 16% from Rs.873 billion ($3.14 billion) in the same month last year, surpassing the six-month average growth rate of 10-11%, according to an official statement.

“This month’s tax performance reveals a nuanced and strategically significant fiscal outcome, characterized by substantial increase in direct taxation, modest growth in indirect and excise streams and an overall healthy and improved performance in January 2026,” the statement said.

“It also reinforces the credibility of reform-driven revenue mobilization and transformation plan of FBR,” it added.

Income tax collection rose 26% to Rs483 billion ($1.74 billion) from Rs381 billion ($1.37 billion) a year earlier, reflecting what the FBR described as the impact of enforcement measures and efforts to unlock revenue tied up in litigation.

Sales tax receipts increased 12% to Rs360 billion ($1.30 billion) from Rs322 billion ($1.16 billion) last year, which the tax authority linked to signs of recovery in large-scale manufacturing.

The FBR said the results underscored the effectiveness of its reform program, including the use of digital infrastructure and enforcement tools to improve compliance and expand the tax base, while encouraging voluntary taxpayer participation.

Cumulatively, the FBR collected Rs7.18 trillion ($25.83 billion) in the first seven months of the 2026 fiscal year, compared with Rs6.49 trillion ($23.36 billion) in the same period last year.

The tax authority said it was optimistic that continued recovery in manufacturing would help it meet its full-year revenue targets, adding that it aimed to maintain momentum in the remaining months of the fiscal year.
 


Pakistan says over 44.3 million children vaccinated as year’s first anti-polio drive concludes

Updated 09 February 2026
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Pakistan says over 44.3 million children vaccinated as year’s first anti-polio drive concludes

  • Pakistan launched this year’s first week-long anti-polio nationwide campaign on Feb. 2, targeting over 45 million children
  • Pakistan’s attempts to eliminate polio have been hindered in past by militant attacks targeting polio workers, security teams 

ISLAMABAD: Pakistani health authorities have vaccinated over 44.3 million children during the week-long anti-polio nationwide campaign, the first of this year which concluded last week, the National Emergency Operations Center (NEOC) said on Monday. 

Pakistan launched the first anti-polio nationwide campaign on Feb. 2 to target over 45 million children. Over 400,000 trained polio workers took part in the door-to-door campaign to vaccinate children under the age of five against the disease, the government said. 

“More than 44.3 million children were administered polio vaccine drops during the campaign,” the NEOC said in a statement. 

The anti-polio campaign, which concluded on Sunday, saw over 22.9 million vaccinated in Pakistan’s eastern Punjab province. In Sindh, over 10.5 million children were vaccinated, in Khyber Pakhtunkhwa (KP) 7.13 million, in Balochistan 2.36 million, in Islamabad over 455,000, in Gilgit-Baltistan over 261,000 and in Azad Kashmir over 673,000 in seven days, data shared by the NEOC said. 

The center said that the campaign was conducted in Pakistan and Afghanistan simultaneously, the only two countries were the disease remains endemic. 

Last year, Pakistan reported 31 polio cases, a significant drop from the alarming 74 cases reported in the country in 2024. The South Asian nation reported six cases in 2023 and only one in 2021, but saw a sharp resurgence in 2024.

Pakistan’s polio program began in 1994, but efforts to eradicate the virus have been repeatedly undermined by vaccine misinformation and resistance from some religious hard-liners who claim that immunization is a foreign plot to sterilize Muslim children or a cover for Western espionage.

Militant groups have also frequently targeted polio vaccination teams and the security personnel assigned to protect them, often resulting in deadly attacks, particularly in KP and Balochistan.

“Polio workers and security personnel who performed duties during the campaign are the nation’s true heroes,” the NEOC said.