Islamabad – May 1, 2025: The Federal Board of Revenue (FBR) has missed its tax collection target by a staggering margin of Rs. 821 billion during the first ten months (July-April) of the fiscal year 2024-25, raising serious concerns about the country’s fiscal health and revenue mobilization strategy.
According to official data released by the FBR, the total tax collection during July to April stood at Rs. 9,309 billion against a target of Rs. 10,130 billion, reflecting a significant shortfall of nearly 8.1 percent. This persistent underperformance underscores the challenges faced by the tax machinery in achieving ambitious revenue goals amid economic uncertainty, inflationary pressures, and a slowing growth environment.
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The monthly data also shows a continuing trend of missed targets. In April 2025 alone, FBR collected Rs. 845 billion, falling short by Rs. 118 billion against the monthly target of Rs. 963 billion. This shortfall further widens the fiscal gap and puts additional pressure on the government’s efforts to meet the conditions set under its International Monetary Fund (IMF) program.
Experts point out that the revenue shortfall could lead to higher borrowing, further inflationary pressures, and difficulties in funding development projects. The government may also need to consider additional fiscal measures in the upcoming budget to bridge the deficit.
The FBR is under increasing scrutiny to enhance tax compliance, widen the tax base, and implement structural reforms in order to meet its annual target. However, with just two months left in the fiscal year, achieving the full-year target appears increasingly unlikely without aggressive enforcement or policy adjustments.
As Pakistan prepares for budget 2025-26, the performance of FBR in the remaining months will be closely watched by both domestic stakeholders and international lenders.
