Islamabad: The federal government has asked provincial governments to generate more than PKR 400 billion in additional tax revenue in the fiscal year 2026–27 under commitments linked to the International Monetary Fund (IMF) programme.
According to reports, the additional revenue effort will primarily come from agriculture, services and real estate sectors as part of broader fiscal consolidation measures agreed with the IMF.
Under the proposed targets, Sindh has been assigned around PKR 200 billion, Punjab PKR 175 billion, Khyber Pakhtunkhwa PKR 45 billion, and Balochistan nearly PKR 20 billion in additional revenue generation.
Officials said the IMF requires provinces to collectively raise revenue equivalent to around 0.3% of GDP, or approximately PKR 430 billion, while the federal government is expected to mobilise a similar amount through tax measures and enforcement actions.
The Federal Board of Revenue (FBR) has begun sharing income tax and sales tax return data with provinces to support enforcement and improve compliance.
Overall, combined federal and provincial revenue efforts for FY27 are projected to exceed PKR 1.1 trillion, with additional contributions also expected from petroleum levy collections and enforcement-based measures.
Officials noted that provincial revenues are expected to rise significantly in the coming fiscal year, driven mainly by expanded general sales tax on services and stronger enforcement in key sectors. However, agricultural income tax collection remains relatively low due to implementation and compliance challenges.
The government has also urged provinces to coordinate closely with the IMF during budget preparation to ensure alignment with programme commitments.
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