The Federal Board of Revenue (FBR) has recorded a revenue shortfall of Rs868 billion during the first 11 months of the ongoing fiscal year 2025-26.
Official data cited in media reports shows that between July and May, the FBR collected Rs11,227 billion against a revised target of Rs12,095 billion.
The shortfall has been attributed mainly to weaker economic activity, reportedly impacted by Middle East tensions, along with extended Eid holidays that further reduced tax inflows.
For the month of May, the FBR generated Rs966 billion compared to the target of Rs1,150 billion, recording a shortfall of Rs184 billion. Officials expect the final figure for the month may improve slightly once remaining data is consolidated.
To meet the revised annual target of Rs13,979 billion by June 30, 2026, the tax authority will need to collect Rs2,752 billion in June alone. This revised target was set after the IMF lowered the original budget estimate of Rs14,130 billion.
Parliament had initially approved the higher target during the budget announcement, but it was later adjusted downward under the IMF programme.
With current trends pointing toward a possible shortfall nearing Rs1 trillion, officials suggest that achieving Rs13 trillion in total collections would still be considered a reasonable outcome under the circumstances.
FBR officials believe that collections may approach the Rs13 trillion mark by the end of June, though the current trajectory makes this challenging. They stated that around Rs60 billion in lost revenue due to extended Eid holidays may be partially recovered in the final month.
Looking ahead, concerns are being raised about the next fiscal year’s even higher target of Rs15,267 billion set under IMF guidelines, which would require an additional increase of about Rs2.2 trillion in collections.
Earlier figures show that the FBR collected Rs10,261 billion during the first 10 months of the fiscal year (July–April), against a target of Rs10,945 billion, resulting in a Rs684 billion shortfall before it widened further in May.
Officials also noted that a decline in sales tax collection at the import stage—linked to reduced import activity amid external pressures—has further strained overall revenue performance.
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