ISLAMABAD, November 29, 2024 – The Federal Board of Revenue (FBR) has projected a significant shortfall in revenue collection for November 2024, attributing it to disruptions caused by recent political protests and government-imposed lockdowns.
The political turmoil, which brought economic activities to a standstill for five days, has severely impacted the FBR’s ability to meet its revenue targets. While the protests have been dismantled, the resulting uncertainty and halts in business activity have led to an anticipated shortfall of Rs160 billion against the November target of Rs1,003 billion. So far, the FBR has managed to collect approximately Rs700 billion.
If the projected shortfall materializes, it will exacerbate the existing revenue gap, increasing the cumulative shortfall for the first five months of the fiscal year to Rs349 billion. The FBR already recorded a deficit of Rs189 billion during the July-October period of the current fiscal year.
Officials estimate that even with maximum effort, the FBR may collect Rs840-850 billion for November, leaving a gap of Rs150-160 billion. “The lockdowns and disruptions from the PTI protest call have worsened the shortfall. Initial projections estimated a deficit of Rs100 billion, but the figure is now expected to rise significantly,” said a senior FBR official.
This growing shortfall poses a challenge for the government in meeting the International Monetary Fund’s (IMF) revenue targets. Under the IMF agreement, the government set an ambitious revenue collection target of Rs12,913 billion for the fiscal year 2024-25, with parliament approving an even higher goal of Rs12,970 billion. The FBR must achieve a revenue growth rate of 40% to meet these targets, a steep climb given the current shortfall and the 25% growth achieved so far compared to the previous fiscal year.
With only two days remaining in November, the FBR faces mounting pressure to recover lost ground. However, continued political instability threatens further losses, leaving the government scrambling to address the fiscal challenges and reassure the IMF.
