Pakistan failed to meet the International Monetary Fund (IMF) tax collection target for the second consecutive year, with the Federal Board of Revenue (FBR) collecting Rs13.003 trillion during fiscal year 2025–26 Rs975 billion below the revised goal of Rs13.979 trillion.
The final figure was broadly in line with the FBR’s own revised estimate made in June after missing revenue targets for the first 11 months of the fiscal year. Tax officials said the banking system had cleared Rs12.97 trillion, with the remaining amount expected to be accounted for by the close of the financial year.
The shortfall comes despite the IMF reducing the original target of Rs14.13 trillion to Rs13.979 trillion during its May review. In dollar terms, the FBR collected roughly $4 billion less than the initial target agreed with the IMF and the government last year.
Looking ahead, the tax authority faces an even steeper challenge, with a collection target of Rs15.264 trillion for the new fiscal year. Meeting that goal is considered crucial to funding key national priorities, including border security, water security, and food and energy security.
The FBR’s tax-to-GDP ratio edged down to 10.2% in FY2025–26, reflecting continued difficulties in boosting tax revenues despite additional fiscal measures and higher-than-expected inflation during the year.