Pakistan’s salaried class is paying significantly more taxes than several major business sectors combined, highlighting a widening imbalance in the country’s tax structure as the International Monetary Fund reviews Pakistan’s $7 billion loan program.
The findings were shared during a policy roundtable hosted by Friedrich Ebert Stiftung at the launch of the report State, Society and Progressive Taxation in Pakistan, authored by economist Dr. Sajid Amin Javed.
According to the report, tax payments from salaried individuals climbed to Rs. 391 billion in 2024, up from Rs. 276 billion in 2023, marking an increase of over 41 percent.
The study shows that salaried workers contributed around 352 percent more tax revenue than exporters, retailers, wholesalers and distributors combined. It describes this trend as part of a structural shift in Pakistan’s tax system rather than a temporary surge in collections.
Over the five-year period from 2019 to 2024, taxes paid by salaried employees increased by more than 412 percent, with their total contribution reaching approximately Rs. 1.14 trillion.
In contrast, retailers paid about Rs. 16.54 billion in taxes during the same period, while wholesalers and distributors contributed roughly Rs. 35.23 billion, the report noted.
