Key information about Pakistan Tax revenue: % of GDP

• Pakistan Tax revenue: % of GDP was reported at 5.7 % in Dec 2024.
• This records a decrease from the previous number of 5.8 % for Dec 2023.
• Pakistan Tax revenue: % of GDP data is updated yearly, averaging 4.6 % from Dec 2000 to 2024, with 25 observations.
• The data reached an all-time high of 5.8 % in 2023 and a record low of 3.7 % in 2001.
• Pakistan Tax revenue: % of GDP data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Tax Revenue: % of Nominal GDP: Annual.

CEIC shifts year-end for annual Tax Revenue as % of Nominal GDP and calculates it from quarterly Tax Revenue and annual Nominal GDP. The Ministry of Finance provides year-to-date Tax Revenue in local currency. The Pakistan Bureau of Statistics provides Nominal GDP in local currency. Nominal GDP is in annual frequency, ending in June of each year.

Pakistan PK: Revenue and Grants: Revenue: Tax Revenue: % of GDP data was reported at 9.189 % in 2011. This records a decrease from the previous number of 9.975 % for 2010. Pakistan PK: Revenue and Grants: Revenue: Tax Revenue: % of GDP data is updated yearly, averaging 11.022 % from Jun 1973 (Median) to 2011, with 31 observations. The data reached an all-time high of 13.708 % in 1989 and a record low of 8.943 % in 2009. Pakistan PK: Revenue and Grants: Revenue: Tax Revenue: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Pakistan – Table PK.World Bank.WDI: Government Revenue, Expenditure and Finance. Tax revenue refers to compulsory transfers to the central government for public purposes. Certain compulsory transfers such as fines, penalties, and most social security contributions are excluded. Refunds and corrections of erroneously collected tax revenue are treated as negative revenue.; ; International Monetary Fund, Government Finance Statistics Yearbook and data files, and World Bank and OECD GDP estimates.; Weighted average;

The statistic shows the ratio of government revenue to gross domestic product (GDP) in Pakistan from 2012 to 2018. In 2018, government revenue in Pakistan amounted to approximately **** percent of the nation's gross domestic product.

In 2024, the budget balance in relation to the gross domestic product (GDP) in Pakistan stood at about -6.78 percent. Between 1993 and 2024, the figure dropped by approximately 1.25 percentage points, though the decline followed an uneven course rather than a steady trajectory. The forecast shows the budget balance will steadily grow by around 3.87 percentage points from 2024 to 2030.The indicator describes the general government net lending / borrowing, which is calculated as revenue minus total expenditure. The International Monetary Fund defines the general government expenditure as consisting of total expenses and the net acquisition of nonfinancial assets. The general government revenue consists of the revenue from taxes, social contributions, grants receivable, and other revenue.

In 2023, agriculture contributed around 23.33 percent to the GDP of Pakistan, 20.68 percent came from the industry, and over half of the economy’s contribution to GDP came from the services sector. Divisions of the economy There are three main sectors of economy: The primary sector encompassed agriculture, fishing and mining. The secondary sector is the manufacturing sector, also known as the industry sector; and last but not least, the tertiary sector, alias the services sector, which includes services and intangible goods, like tourism, financial services, or telecommunications. Today, most developed countries have a well-established services sector that contributes the lion’s share to their GDP. On the other hand, economies that still need support and are still developing typically rely on agriculture to fuel their economy. If they transition to a developed nation, it is usually because their economy is now able to focus on services as an economic driver. Pakistan’s economic driver Although Pakistan is not considered a fully developed nation yet, over half of its annual GDP is now generated by the services sector. However, the primary sector plays an important role for the country: It is still responsible for almost a quarter of GDP contribution, and it employs almost half of Pakistan’s workforce. Pakistan is rich in arable land, which explains why the majority of the Pakistani population lives in rural areas, producing and selling sugarcane, wheat, cotton, and rice, which are also exported to other countries.

Pakistan: International tourism revenue, percent of GDP: The latest value from 2020 is 0.25 percent, a decline from 0.31 percent in 2019. In comparison, the world average is 3.33 percent, based on data from 125 countries. Historically, the average for Pakistan from 1995 to 2020 is 0.53 percent. The minimum value, 0.24 percent, was reached in 2018 while the maximum of 0.99 percent was recorded in 1997.

Pakistan PK: Revenue Excluding Grants: % of GDP data was reported at 12.234 % in 2011. This records a decrease from the previous number of 13.802 % for 2010. Pakistan PK: Revenue Excluding Grants: % of GDP data is updated yearly, averaging 14.268 % from Jun 1973 (Median) to 2011, with 31 observations. The data reached an all-time high of 18.626 % in 1989 and a record low of 12.234 % in 2011. Pakistan PK: Revenue Excluding Grants: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Pakistan – Table PK.World Bank.WDI: Government Revenue, Expenditure and Finance. Revenue is cash receipts from taxes, social contributions, and other revenues such as fines, fees, rent, and income from property or sales. Grants are also considered as revenue but are excluded here.; ; International Monetary Fund, Government Finance Statistics Yearbook and data files, and World Bank and OECD GDP estimates.; Weighted average;

Pakistan’s gross domestic product (GDP) growth was 5.77 percent in 2021 after adjusting for inflation.

GDP in developing nations

Gross domestic product measures value of all final goods and services produced within a country’s borders during a certain period of time. In developing countries, GDP should rise more quickly due to “catch-up growth”. In many developing nations, employment is shifted from agriculture to the services sector; simply shifting workers from one sector to more productive sectors increases the income of both the workers and their employers, increasing GDP. This raises GDP per capita (383750), which gives a general idea of the level of development.

International setting

Due to historic tensions, Pakistan neither imports nor exports a significant amount from its neighbor India, favoring China instead. Its other neighbors, Afghanistan and Iran, are not as economically stable at the moment. Pakistan's own GDP is also not in the best shape and is expected to drop during 2019, however, Pakistan stands to benefit from China’s Belt and Road Initiative, which would revive the trading routes that made Pakistan wealthy in past centuries. If this comes to fruition, the GDP for Pakistan is sure to increase.

Pakistan Air Pollution: Tax Revenue: % of GDP data was reported at 0.037 % in 2022. This records a decrease from the previous number of 0.076 % for 2021. Pakistan Air Pollution: Tax Revenue: % of GDP data is updated yearly, averaging 0.000 % from Dec 1994 (Median) to 2022, with 29 observations. The data reached an all-time high of 0.410 % in 2015 and a record low of 0.000 % in 2011. Pakistan Air Pollution: Tax Revenue: % of GDP data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Pakistan – Table PK.OECD.ESG: Environmental: Environmentally Related Tax Revenue: Environmental Protection Domains: Non OECD Member: Annual.

This line chart displays tax revenue (% of GDP) by date using the aggregation average, weighted by gdp in Pakistan. The data is about countries per year.

The Gross Domestic Product per capita in Pakistan was last recorded at 1643.68 US dollars in 2024. The GDP per Capita in Pakistan is equivalent to 13 percent of the world's average. This dataset provides - Pakistan GDP per capita - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Pakistan PK: General Government: Revenue: % of GDP data was reported at 15.970 % in 2023. This records an increase from the previous number of 15.957 % for 2022. Pakistan PK: General Government: Revenue: % of GDP data is updated yearly, averaging 14.272 % from Dec 1990 (Median) to 2023, with 34 observations. The data reached an all-time high of 15.970 % in 2023 and a record low of 12.057 % in 1998. Pakistan PK: General Government: Revenue: % of GDP data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Pakistan – Table PK.IMF.FM: Government Finance Statistics.

This horizontal bar chart displays tax revenue (% of GDP) by currency using the aggregation average, weighted by gdp in Pakistan. The data is about countries per year.

Pakistan: Revenue minus production cost of natural gas, percent of GDP: The latest value from 2021 is 0.74 percent, an increase from 0.72 percent in 2020. In comparison, the world average is 0.81 percent, based on data from 181 countries. Historically, the average for Pakistan from 1970 to 2021 is 0.63 percent. The minimum value, 0 percent, was reached in 1982 while the maximum of 1.75 percent was recorded in 2005.

This scatter chart displays tax revenue (% of GDP) against individuals using the Internet (% of population) in Pakistan. The data is about countries per year.

Pakistan Ocean: Tax Revenue: % of GDP data was reported at 0.000 % in 2021. This stayed constant from the previous number of 0.000 % for 2020. Pakistan Ocean: Tax Revenue: % of GDP data is updated yearly, averaging 0.000 % from Dec 1994 (Median) to 2021, with 28 observations. The data reached an all-time high of 0.000 % in 2021 and a record low of 0.000 % in 2021. Pakistan Ocean: Tax Revenue: % of GDP data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Pakistan – Table PK.OECD.ESG: Environmental: Environmentally Related Tax Revenue: by Environmental Domain: Non OECD Member: Annual.

This scatter chart displays tax revenue (% of GDP) against proportion of seats held by women in national parliaments (%) in Pakistan. The data is about countries per year.

This report focuses principally on three key dimensions of better public expenditure management in Pakistan. First, it is paramount to continue financial discipline and reduce the overall size of the public sector deficit, including the sizable losses of public enterprises. The modest progress made in reducing the government's fiscal deficit during the past few years has been undermined by the persistence of high level of losses of public enterprises, especially Water and Power Development Authority (WAPDA), and Karachi Electricity Supply Company (KESC). To reduce the unsustainable burden of public debt, the fiscal deficit, which has averaged 5.5 percent of GDP (excluding grants) and 3.4 percent (including grants) during the past three years, must be brought down further. Provision needs to be made for the large and continuing public enterprise losses and unfunded contingent liabilities of the public sector. A strong and successful government revenue mobilization effort, which will gradually raise the ratio of revenues from 17 percent of GDP (FY02) to say 20 percent over the next decade, remains central to restoring Pakistan's fiscal health. But as the experience of the past few years shows, the structural weakness in the taxation structure (relatively heavy dependence on trade taxes) and the institutional weaknesses in the tax collection machinery (especially on the income tax side) will continue to dampen revenue growth for some time. Thus it will be prudent to assume, at best, only moderate growth in the ratio of government revenues to GDP over the next five years. Even on the assumption of a steady increase in the ratio of government revenue to GDP, the growth in overall public spending in real terms will be modest over the next few years because of the need to reduce the deficit further and to fund public enterprise losses and contingent liabilities. Indeed, in the medium term overall public spending as a proportion of GDP is unlikely to increase from the level of 22 percent witnessed in recent years, even if grant assistance remains at a relatively high level.

This scatter chart displays vulnerable employment (% of total employment) against tax revenue (% of GDP) in Pakistan. The data is about countries per year.

This scatter chart displays electricity production from nuclear sources (% of total) against tax revenue (% of GDP) in Pakistan. The data is about countries per year.