Pakistan, June 10 -- ISLAMABAD - In a shocking revelation, the government reported a massive rise in tax exemption costs, reaching Rs5.8 trillion this year. This marks a record increase of Rs2 trillion in just the first year of the current government's tenure. The data was released in the Economic Survey 2025, presented by Finance Minister Muhammad Aurangzeb. Surprisingly, the rise occurred despite many tax breaks being withdrawn last year.

In dollar terms, Pakistan lost $21 billion to tax exemptions-more than its $17 billion debt repayment due this year. These exemptions, granted under various tax laws, have steadily increased, raising concerns over transparency. Experts believe either hidden exemptions were introduced, or previous figu...