ISLAMABAD: The Federal Board of Revenue (FBR) is considering a contingency plan to meet its revenue target for fiscal year 2025-26 after collecting Rs8.12 trillion during the first eight months, falling short of the assigned target of Rs8.55 trillion by Rs430 billion, sources confirmed.
The shortfall highlights growing challenges amid economic pressures, policy constraints, and compliance gaps.
If the gap persists, the Ministry of Finance may seek a downward revision of FBR’s annual tax collection target or implement expenditure cuts to stay within fiscal deficit and primary balance limits under the IMF Extended Fund Facility (EFF) program. The IMF had already reduced Pakistan’s FY26 tax target from Rs14.13 trillion to Rs13.979 trillion.
FBR officials indicated that if the IMF does not approve further downward adjustments, the agency could activate contingency measures including raising excises on fertilizers and pesticides, imposing duties on high-value sugary items, broadening the sales tax base, and reducing or delaying government spending to safeguard fiscal targets.
Analysts say the FBR’s success in achieving the FY26 target will depend on enforcement of these measures, economic growth, and taxpayer compliance, with failure potentially affecting development spending and macroeconomic stability.
