Islamabad: The Federal Board of Revenue (FBR) has provisionally collected PKR 11,722 billion in tax revenue during the fiscal year 2024–25, missing its downward-revised target of PKR 11,900 billion by PKR 178 billion.
The government had initially set an ambitious tax collection target of PKR 12,913 billion for the fiscal year. This target was later revised to PKR 12,334 billion and eventually brought down to PKR 11,900 billion in light of slower-than-expected economic activity and collection constraints.
Despite imposing new taxation measures worth approximately PKR 1.8 trillion for FY25, the FBR was unable to meet even the revised target. A significant shortfall was observed throughout the fiscal year, with the gap reaching PKR 1,027 billion by the end of May 2025.
In June alone, the FBR faced a particularly difficult challenge with a target of PKR 1,667 billion for the month, which it also failed to achieve. By 10 PM on June 30, provisional figures indicated tax collections stood at PKR 11,722 billion, falling short by PKR 178 billion.
The revenue shortfall underscores persistent challenges in expanding the tax base, enforcing compliance, and meeting budgetary goals, despite the implementation of various indirect tax hikes and adjustments in withholding taxes.
Analysts believe the failure to meet revenue targets could complicate fiscal planning and ongoing negotiations with the International Monetary Fund (IMF), which closely monitors Pakistan’s revenue performance.
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