ISLAMABAD: The Federal Board of Revenue (FBR) recorded a revenue gap of Rs868 billion during the first 11 months of fiscal year 2025-26.
Between July and May, the tax authority collected Rs11.227 trillion against a revised target of Rs12.095 trillion, resulting in a significant shortfall.
According to the reports, the widening gap to two major factors: slower economic activity linked to the ongoing Gulf conflict and the impact of extended Eid holidays. The revenue deficit increased by Rs184 billion in May alone.
Preliminary figures show the FBR generated Rs966 billion in May, falling well short of the monthly target of Rs1.15 trillion. Authorities remain hopeful that the final collection figure for the month could improve slightly after adjustments.
To achieve the revised annual revenue target of Rs13.979 trillion by June 30, the FBR would need to collect approximately Rs2.752 trillion during June – a challenging task given current trends.
The original tax collection target approved by Parliament stood at Rs14.13 trillion, but it was later revised downward to Rs13.979 trillion under an agreement with the International Monetary Fund (IMF).
With the fiscal year nearing its end, the FBR appears headed toward a total shortfall approaching Rs1 trillion. Officials believe reaching the Rs13 trillion collection mark would still represent a notable achievement under prevailing economic conditions.
FBR authorities are optimistic that revenue collections could move closer to Rs13 trillion by the end of June. They argue that nearly Rs60 billion in revenue was delayed due to the extended Eid holidays and could be recovered during the final month of the fiscal year.
However, questions are already being raised about the feasibility of the proposed Rs15.267 trillion tax target for the next fiscal year. Meeting that goal would require the FBR to generate roughly Rs2.2 trillion in additional revenue compared to current projections.
Earlier data showed that during July-April, the FBR collected Rs10.261 trillion against a target of Rs10.945 trillion, creating a shortfall of Rs684 billion. The deficit widened further in May, pushing the cumulative gap to Rs868 billion for the first 11 months of FY2025-26.
