Islamabad, Mar 29, 2025: Pakistan’s Federal Board of Revenue (FBR) is confronting a significant revenue shortfall, missing its March 2025 tax collection target by over PKR 100 billion (approximately $355 million).
As of March 27, the Federal Board of Revenue (FBR) collected PKR 1,100 billion, falling short of the PKR 1,220 billion goal.
Cumulatively, for the first nine months of the fiscal year (July 2024 to March 2025), the FBR amassed PKR 8,444 billion, trailing the targeted PKR 9,167 billion by over PKR 700 billion.
This persistent shortfall poses a substantial challenge for the FBR to achieve the revised annual tax collection target of PKR 12,334 billion set for the ongoing fiscal year.
The International Monetary Fund (IMF) has acknowledged these fiscal pressures and is considering adjusting Pakistan’s tax collection targets downward.
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Contingent upon the government’s ability to curtail expenditures and maintain a primary budget surplus of PKR 1.2 trillion.
In response to these fiscal challenges, the Federal Board of Revenue (FBR) has implemented measures such as decelerating tax refunds to bolster revenue figures.
For instance, in March, the Federal Board of Revenue (FBR) issued PKR 34 billion in tax refunds, contributing to a total of PKR 384 billion refunded over the past nine months.
Despite these efforts, the FBR’s gross collection in February 2025 stood at PKR 885 billion, with net collections around PKR 847-848 billion after accounting for refunds.
The FBR’s inability to meet its revenue targets underscores the broader economic challenges facing Pakistan, including lower-than-anticipated inflation and GDP growth.
These factors have directly impacted tax collection efforts, necessitating strategic fiscal adjustments to address the mounting revenue shortfall.
