Islamabad: The Federal Board of Revenue (FBR) is set to approach the International Monetary Fund (IMF) with a proposal to reduce Pakistan’s fiscal year 2025–26 tax collection target by up to PKR 100 billion, officials said on Friday. The minimum proposed reduction is expected to be around PKR 50 billion.
According to sources, working papers for the upcoming economic review are being finalised, and the proposal has been discussed at the highest levels of government. The review will examine tax performance from July to January in the context of inflation and economic growth trends.
Prime Minister Shehbaz Sharif has directed the FBR not to introduce any new taxes until June 30 and to achieve the existing target without a mini-budget.
Under its current agreement with the IMF, the FBR had already revised the annual tax target from PKR 14.131 trillion to PKR 13.979 trillion, though parliament has yet to formally approve the revised figure. If the IMF approves the new proposal, the target may be further lowered to PKR 13.879 trillion.
Between July and January, the FBR collected PKR 7.147 trillion against a target of PKR 7.521 trillion, leaving a shortfall of PKR 372 billion. Officials noted that super tax collections are projected to reach between PKR 217 billion and PKR 220 billion for the fiscal year, with nearly PKR 175 billion already collected.
Revenue growth for the first seven months of FY26 stands at around 12 percent compared to PKR 6.699 trillion collected in the same period last year. Officials expressed hope that increased consumer spending ahead of Eid could improve sales tax receipts, while the final decision on any downward revision will depend on the IMF’s response during the review talks.
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