Pakistan granted tax exemptions worth a staggering Rs5,840 billion during the current fiscal year, with the highest relief extended in the form of sales tax, according to the Economic Survey 2024–25 released on Monday.
The report reveals a sharp increase of Rs1,961 billion in tax exemptions compared to the previous year, reflecting the state’s strategy to support certain sectors amid ongoing economic challenges.
Tax relief breakdown
The breakdown of tax exemptions is as follows:
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Sales tax: Rs4,253 billion
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Income tax: Over Rs800 billion
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Customs duty: Over Rs785 billion
These concessions were aimed at stimulating economic activity, supporting critical industries, and reducing the cost burden on consumers and businesses.
Also Read: Pakistan granted Rs5,840bn tax exemptions in 2024-25
Govt debt rises by Rs4,900 billion
Despite efforts to stabilize the economy, the country’s total government debt rose from Rs65,105 billion in June 2024 to Rs69,195 billion by March 2025, marking an increase of Rs4,090 billion in just nine months.
As per the survey:
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Domestic debt: Rs51,518 billion (as of March 2025)
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External debt: Rs24,489 billion
However, a silver lining emerged as the debt-to-GDP ratio declined from 68% to 65%, suggesting improved debt sustainability, largely due to a growing GDP base.
Overseas employment surges
The survey also highlighted a significant rise in overseas employment. A total of 727,381 Pakistanis went abroad for work in 2024, with more than 62% heading to Saudi Arabia, making it the top destination.
Also Read: Pakistan records 2.7% GDP growth in 2025: Fin min releases economic survey
Key destinations include:
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Saudi Arabia: 452,562 Pakistanis (62%)
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United Arab Emirates: 9% of total migrants. UAE employed 64,130 Pakistanis in 2024
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Oman: 11%, with 64,000 people migrating
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Qatar: 40,818 Pakistanis employed
The rise in overseas employment has helped ease domestic job market pressures and boost foreign remittances, contributing positively to the external account.
