Tax Contributions of Pakistan’s Top Companies in 2024: A Sectoral Analysis

The tax landscape in Pakistan saw significant shifts in the calendar year 2024, with the country’s top-listed companies collectively contributing Rs1.22 trillion in direct tax collections. This marked a 2.2% year-on-year increase, accounting for 23.6% of the total direct tax collection in the country.

Among the sectors that stood out in terms of tax contributions were auto assemblers, which saw a remarkable 62% surge, followed by fertilisers (19%), investment banks (15%), commercial banks (12%), textiles (10%), and cement (9%). However, not all sectors thrived, with refineries, chemicals, Oil Marketing Companies (OMCs), and Exploration and Production (E&P) firms facing declines in tax contributions due to sector-specific challenges.

The government revised its tax collection target for fiscal year 2025 downward to Rs12.35 trillion following negotiations with the International Monetary Fund (IMF). Despite this adjustment, total tax revenues soared 27% year-on-year to Rs10.47 trillion in CY24, with direct tax collection alone jumping 33% to Rs5.16 trillion.

KSE-100 companies played a crucial role in contributing to national revenue, with Rs687 billion added in the first half of fiscal year 2025. However, the banking sector faced challenges due to tax policy changes, while the E&P sector saw a significant increase in tax contributions primarily due to the absence of key tax benefits.

Overall, the strong tax contributions from top-listed companies underscore their importance in Pakistan’s tax revenue framework. With evolving government policies and macroeconomic shifts, sectoral tax contributions will continue to be a key area to monitor in the coming months.