In the fiscal year 2024-25, Pakistanis spent over Rs 317 billion on various digital apps and services, as per data shared by the Federal Board of Revenue (FBR). The report, presented by FBR Chairman Rashid Mahmood to the National Assembly Standing Committee on Finance, highlights over 42.6 million online transactions during the year.
Major platforms included Meta (Facebook, Instagram, WhatsApp), Apple, Google, Netflix, AliExpress, Temu, and others.
To manage and regulate this rising trend in digital spending, the federal government has introduced a new tax framework under the Digital Presence Proceeds Levy Act, 2025. This law proposes a 5% tax on payments made by Pakistani users to foreign digital vendors, including e-commerce websites, streaming platforms, and social networks.
The tax will be collected by banks and financial institutions, which will deduct the amount directly during the transaction process.
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Breakdown of Digital Spending:
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Meta (Facebook, Instagram, WhatsApp): Rs 12.3 billion
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Apple/iTunes: Over 5.1 million transactions totaling Rs 6 billion
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Google: 2.3 million transactions worth Rs 5.94 billion
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AliExpress: 944,466 transactions, Rs 4.9 billion
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Netflix: 3.37 million transactions, Rs 2.79 billion
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Temu: 376,745 transactions, Rs 1.8 billion
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Other Platforms: 28.6 million transactions, Rs 281.4 billion
Legislative Developments:
The Standing Committee on Finance reviewed several tax proposals during the session. It endorsed the Digital Presence Proceeds Levy Act, 2025 with minor revisions and also discussed amendments to the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 and the Income Tax Ordinance, 2001.
Key figures in attendance included Omer Ayub Khan, Dr. Nafisa Shah, Sharmila Faruque, Ali Zahid, the Minister of Finance, and the Chairman of FBR.
