Pakistan’s government granted tax exemptions worth Rs11.047 trillion over five fiscal years, from 2020–21 to 2024–25, the National Assembly was informed on October 26, 2026. The disclosure has renewed attention on the scale of tax concessions and their implications for government revenue and the country’s taxation system.
Finance Ministry Shares Tax Exemption Figures
According to information presented by the Finance Ministry, the total value of exemptions granted during the five-year period reached Rs11,047 billion.
The ministry provided the following breakdown of selected tax exemptions:
| Tax Category | Reported Exemptions |
|---|---|
| Income tax | Rs580 billion |
| Sales tax | Rs1.274 trillion |
| Customs duty | Rs499 billion |
| Total exemptions across the five-year period | Rs11.047 trillion |
The figures for the individual tax categories represent the amounts specifically reported in the parliamentary briefing. They should not be treated as a complete breakdown of the overall total.
Government Plans Relief Policy for LPG Consumers
Alongside the tax exemption disclosure, Petroleum Minister Ali Pervaiz Malik told the National Assembly that the government was preparing a policy to help low-income households struggling with rising liquefied petroleum gas (LPG) prices.
The minister said Prime Minister Shehbaz Sharif had held several meetings to address the issue. The proposed policy aims to improve LPG supplies, support vulnerable consumers through subsidised fuel and promote fair competition in the market.
LPG Prices Affected by International Market Conditions
Malik explained that the Oil and Gas Regulatory Authority’s notified price of Rs280 applied to locally produced LPG, while the government did not have a comparable policy framework for imported supplies.
He said the international LPG benchmark had increased to $705 per tonne, affecting domestic pricing. The government was also considering alternative supply arrangements involving Oman and Saudi Arabia to address potential supply difficulties.
The minister added that the suspension of approximately 900 million cubic feet per day of gas supplies from Qatar due to the regional conflict had affected Pakistan’s gas availability. With winter approaching, demand for alternative fuels such as LPG is expected to place additional pressure on supplies.
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Tax Exemptions and Government Revenue
Tax exemptions can be used to support selected industries, encourage investment or reduce costs for particular goods and services. However, they also represent revenue the government does not collect under the applicable tax rules.
The disclosure of Rs11.047 trillion in exemptions over five years raises questions about which sectors and beneficiaries received the concessions and what economic benefits they delivered. Greater transparency around the purpose and impact of exemptions can help lawmakers assess whether they are achieving their intended objectives.
The parliamentary briefing also highlighted the government’s challenge of balancing revenue collection with relief for households facing rising living costs.
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