Islamabad, 12 June 2025: FBR Sets Rs. 12 Trillion Tax emerged as a central focus during a meeting of the National Assembly’s Standing Committee on Finance, chaired by seasoned lawmaker Syed Naveed Qamar. The session featured extensive deliberations on the upcoming Finance Bill and fiscal strategy for the next financial year.
Committee Chairman Qamar questioned the absence of an anomalies committee in the current process. In response, the Federal Board of Revenue (FBR) chief announced that both an anomalies and a technical committee would be established by the end of the day.
Federal Finance Minister Muhammad Aurangzeb briefed lawmakers on various economic indicators, noting that inflation has moderated significantly compared to last year’s 23% figure. He added that for the first time in many years, Pakistan is expected to post a current account surplus.
READ MORE: FBR Recommends Higher Taxes on Cars
Aurangzeb shared that Pakistan had received $27 billion in remittances in 2023, and he projected the number could rise to $37–38 billion by June this year. “FBR Sets Rs. 12 Trillion Tax” was highlighted as a recalibrated revenue target, reflecting the government’s confidence in improved enforcement and documentation.
He also clarified that recent speculation about a mini-budget was unfounded. “We haven’t staged this to seek applause it’s a reflection of reforms we’ve executed,” Aurangzeb noted, referencing reductions in electricity prices and progress on energy sector restructuring.
Looking ahead, the finance minister confirmed that the government aims to privatize PIA, Roosevelt Hotel, and three distribution companies (DISCOs) within this fiscal year. Salary earners will also benefit from a cut in income tax. “Give me one example where a raised tax was ever reduced,” Aurangzeb challenged critics, defending the budget’s fairness.
Regarding IMF negotiations, Aurangzeb revealed that the fund had agreed to Rs. 389 billion in additional fiscal measures and recognized Pakistan’s ability to enforce taxation.
For FY2025, the FBR’s revised tax collection target stands at Rs. 11.9 trillion, according to Finance Secretary Imdadullah Bosal. Non-tax revenue is projected at Rs. 4.9 trillion. Notably, the central bank’s expected profit is pegged at Rs. 2.5 trillion, while petroleum levy collection is estimated at Rs. 1.28 trillion.
Under the next budget, the central bank is forecast to generate Rs. 2.4 trillion in profits, and the petroleum levy target will rise to Rs. 1.468 trillion. Additionally, a Rs. 2.50 carbon levy will be factored into petroleum pricing.
Furnace oil is expected to carry both petroleum and carbon levies, although officials clarified that the petrol levy would not exceed Rs. 80.5 per liter, and Rs. 79.5 for diesel. The government also expects Rs. 206 billion in dividends as part of non-tax revenue and Rs. 105 billion in carbon-related levies from captive power plants.
READ MORE: FBR has 2 Million New Taxpayers Registered
Opposition leader Omar Ayub clashed with the committee chair over speaking time, eventually being granted the floor. He raised legal objections, especially about proposals in the Income Tax Ordinance that permit arresting taxpayers. “This could turn into a dangerous weapon,” he cautioned.
He also flagged massive losses from fuel smuggling, reportedly costing the treasury Rs. 550 billion annually. “This oil doesn’t come in rickshaws it’s transported in tankers across 26 bridges while enforcement looks the other way,” Ayub alleged.
As lawmakers wrestled with both numbers and oversight, the target FBR Sets Rs. 12 Trillion Tax remained the focal point of an ambitious fiscal roadmap for Pakistan’s financial stability.
