Pakistan granted tax exemptions worth Rs5,840 billion in the fiscal year 2024–25, according to the Economic Survey released by the government on Monday. The report shows a significant increase of Rs1,961 billion in tax concessions compared to the previous year, with the largest relief provided through sales tax exemptions.
The detailed tax relief includes Rs4,253 billion in sales tax, over Rs800 billion in income tax, and more than Rs785 billion in customs duties. These exemptions were introduced to provide economic relief, support key industries, and reduce financial burdens on consumers and businesses during a challenging fiscal year.
Despite these measures, the country’s overall government debt rose by Rs4,090 billion, increasing from Rs65,105 billion in June 2024 to Rs69,195 billion by March 2025. The domestic debt stood at Rs51,518 billion while external debt reached Rs24,489 billion. However, the debt-to-GDP ratio improved, falling from 68% to 65%, indicating better debt sustainability as the economy expanded.
The survey also recorded a significant rise in overseas employment. In 2024, a total of 727,381 Pakistanis went abroad for work. Saudi Arabia remained the leading destination, receiving 452,562 Pakistani workers, accounting for 62% of the total. The United Arab Emirates hired 64,130 workers (9%), Oman employed 64,000 (11%), and Qatar received 40,818 workers. This increase in foreign employment contributed to easing domestic job pressures and boosting remittances, positively impacting Pakistan’s external finances.
