KARACHI: The Sindh Revenue Board (SRB) has reported remarkable progress in tax collection, highlighted by an unprecedented recovery of arrears amounting to Rs.9.5 billion in February 2026. This significant achievement is part of a broader strategy involving comprehensive reforms aimed at expanding the tax base and strengthening revenue streams across the province. The developments were discussed in detail during a high-level review meeting presided over by Sindh’s Chief Minister, Syed Murad Ali Shah, at the Chief Minister’s House.
During the meeting, the Chief Minister closely examined the SRB’s performance metrics and laid out a clear roadmap for further reforms in the ongoing fiscal year 2025–26. Wasif Memon, Chairman of the SRB, presented the board’s latest figures, revealing that the Rs.9.5 billion arrears recovery played a crucial role in elevating the total tax collection for February to Rs.34.86 billion. This figure represents a substantial 41 percent increase compared to Rs.24.66 billion collected in the same month last year, underscoring the effectiveness of the board’s enhanced recovery and compliance efforts.
Expanding on the year-to-date performance, the SRB’s cumulative collections from July to February in the current fiscal year reached Rs.225.65 billion. This marks a 24 percent rise compared to Rs.182.6 billion collected during the corresponding period of the previous fiscal year. These numbers reflect sustained growth and the positive impact of ongoing reforms designed to broaden the tax net and improve collection mechanisms.
It is worth noting that the SRB also achieved a historic milestone in the previous fiscal year 2024–25, with total revenue collection hitting Rs.306.6 billion. Of this, Rs.284.4 billion came from the Sindh Sales Tax on Services (SST), which itself grew by nearly 30 percent from Rs.237 billion in the prior year. The meeting highlighted that June 2025 witnessed the highest monthly tax collection in the history of the SRB, surpassing Rs.40.5 billion, a record since the authority’s inception approximately 15 years ago.
The briefing further detailed the key sectors driving provincial revenue growth. The ports, airport, and terminal operators sector led the way, generating Rs.40.2 billion, followed by telecommunications with Rs.24.2 billion and banking services contributing Rs.20.34 billion. Other notable sectors included franchise services, which brought in Rs.17.53 billion, and insurance, adding Rs.14.56 billion. Collectively, the top ten sectors accounted for Rs.155.6 billion, while an additional 27 service sectors each contributed over Rs.1 billion, illustrating a well-diversified and expanding tax base.
Several sectors demonstrated particularly rapid growth during the year. Software and IT consultancy services surged by 49 percent, goods transportation increased by 50 percent, and technical and engineering consultancy services grew by 44 percent. The funds and asset management sector emerged as a new top contributor, registering an impressive 162 percent growth and generating Rs.5.76 billion, signaling evolving economic dynamics within the province.
Regional offices also reported strong performances, with the Hyderabad commissionerate collecting Rs.20.9 billion, reflecting a 38 percent increase. Meanwhile, the combined collections from the Sukkur and Larkana commissionerates reached Rs.11 billion, showing a 41 percent growth. Chairman Wasif Memon attributed these gains to enhanced monitoring of high-risk sectors, expanded taxpayer facilitation initiatives, aggressive recovery drives, and greater reliance on digital tools to streamline operations.
The meeting also highlighted that Rs.48.42 billion was collected through withholding agents during the fiscal year 2024–25, up from Rs.37.43 billion the previous year. The automation of Sindh sales tax deductions integrated into the government’s financial systems has played a pivotal role in improving transparency and compliance, reducing leakages, and ensuring timely remittances.
Additionally, collections under the Sindh Workers Welfare Fund (SWWF) and Sindh Workers Participation Fund (SWPPF) recorded robust growth. The SWWF wing alone amassed Rs.22.25 billion in FY 2024–25, exceeding its revised target of Rs.20.2 billion and marking a 55 percent increase despite facing ongoing legal and regulatory challenges. This growth reflects the board’s commitment to strengthening social welfare mechanisms alongside revenue collection.
Chief Minister Syed Murad Ali Shah lauded the SRB’s consistent progress and emphasized the importance of sustaining this momentum. He described crossing the Rs.300 billion revenue mark as a landmark achievement for the province. However, he also stressed the need for continued reforms, urging the board to further expand the tax base by bringing undocumented service providers into the formal tax system and intensifying enforcement against tax evasion.
Moreover, the Chief Minister underscored the critical role of digital transformation and data-driven monitoring in achieving sustainable revenue growth and fiscal stability. He called for the adoption of advanced technology solutions to enhance taxpayer facilitation and ensure efficient, transparent tax administration. These measures are expected to bolster Sindh’s financial health and support the government’s broader development objectives in the coming years.
