ISLAMABAD: A delegation of the International Monetary Fund (IMF) is visiting Pakistan from May 14 to May 22, 2025. The principal reason for their visit is to discuss with the government the forthcoming federal budget.
For the coming financial year, the government has set a huge economic target — a GDP target of RS. 130 trillion. For the Federal Board of Revenue (FBR), it has set a target for tax collection of RS. 14.2 trillion, which is approximately 11% of the overall GDP. The government had already informed the IMF of this information before the visit.
Currently, the tax-to-GDP ratio stands at 10.6%, but the target is to raise it to 11% within the next year. For May 2025 alone, the FBR targets to collect more than RS. 950 billion in taxes.
The FBR aims to collect RS. 11.8 trillion of total tax revenue by the end of the ongoing financial year. Bureaucrats also expect an additional RS. 500 billion from court proceedings against tax defaulters. Unless this money is received, the new revenue target of RS. 12.334 trillion could not be met, which would result in a RS. 500 billion shortfall.
Prior to this revision, the FBR had projected a target of RS. 12.97 trillion higher than this. On the basis of that initial target, the government may experience a bigger shortfall of RS. 1.17 trillion during the current year.
