Islamabad, Feb 14: The government has ruled out the introduction of additional taxes to cover the Rs386 billion shortfall in tax collection, assuring that efforts are underway to meet the revenue target for the current fiscal year. Parliamentary Secretary for Finance Saad Waseem Sheikh made the statement during the National Assembly’s Question Hour while addressing concerns raised by lawmakers.
Responding to a query from Mehreen Razak Bhutto regarding the Federal Board of Revenue’s (FBR) strategy to bridge the revenue gap, Sheikh acknowledged the shortfall but dismissed any immediate plans for tax hikes. Instead, he emphasized that the government is focused on achieving its fiscal targets through other measures.
In a written response to Dr. Nafisa Shah’s question on debt repayment plans, the Ministry of Finance outlined its strategy to maintain public debt at sustainable levels. The ministry highlighted key economic stabilization measures, including achieving a primary surplus, stabilizing the exchange rate, and reducing interest rates through the State Bank of Pakistan, aided by declining inflation.
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These factors, according to the ministry, will contribute to managing and reducing public debt in the coming years. Additionally, the government is handling both external and domestic debt obligations by utilizing available cash reserves for principal and interest repayments, ensuring a balanced approach to financial management.
During the session, the Ministry of Finance also shared a five-year performance review of FBR’s tax collection. The data revealed a steady increase in revenue despite economic challenges. In 2019-20, FBR collected Rs3,997 billion, surpassing its Rs3,908 billion target. The trend continued with Rs4,745 billion in 2020-21 (against a target of Rs4,691 billion) and Rs6,148 billion in 2021-22 (exceeding the Rs6,050 billion target).
However, in 2022-23, FBR narrowly missed its Rs7,200 billion target, collecting Rs7,164 billion. Similarly, in 2023-24, revenue reached Rs9,252 billion, slightly below the Rs9,299 billion target. Despite these minor shortfalls, the figures indicate consistent growth in tax collection, reflecting the government’s ongoing efforts to strengthen fiscal discipline and revenue generation.
