Islamabad, March 6, 2026 – The Federal Board of Revenue (FBR) has shared a detailed revenue collection strategy with the International Monetary Fund (IMF), expressing confidence that Pakistan will achieve its revised tax target for the fiscal year 2025–26 despite a significant shortfall in collections so far.
According to sources in the finance ministry, the FBR briefed the IMF on enforcement and compliance measures aimed at improving tax recovery and strengthening revenue generation during the remaining months of the current fiscal year.
Rs429 Billion Shortfall in Eight Months
The development comes as the tax authority faces a Rs429 billion shortfall in revenue collection during the first eight months (July–February) of FY26.
Originally, the FBR was assigned a tax collection target of Rs14.13 trillion for the fiscal year. However, considering economic conditions, the IMF allowed the government to revise the target downward to Rs13.93 trillion.
Despite the reduced target, the pace of tax collection remains challenging. The FBR has collected Rs8.12 trillion during the first eight months of FY26 and now needs to generate Rs5.38 trillion in the remaining four months to meet the annual target.
IMF Rejects Further Reduction in Target
Sources said the IMF has refused to further lower the revenue target, while the government is also reluctant to introduce new taxation measures due to concerns about the impact on businesses and consumers.
In this situation, the FBR has focused on improving enforcement, audits, and recovery of outstanding tax liabilities rather than introducing new taxes.
Key Revenue Measures Shared with IMF
Officials revealed that the FBR has identified several avenues to boost tax collection before the end of the fiscal year:
• Recovery of Rs120 billion under super tax by June 30, 2026
• Rs80 billion expected from favorable court decisions in pending tax litigation
• Rs50 billion through Alternate Dispute Resolution Committees (ADRC)
• Increased retail sector documentation through Point of Sale (POS) integration
• Aggressive audit and enforcement actions against tax defaulters
• Use of Compliance Risk Management (CRM) systems to identify underreported income
Increased Enforcement Likely
Tax officials indicated that the FBR plans to intensify audits and enforcement drives to recover unpaid or underpaid taxes across various sectors.
However, experts warn that achieving the remaining Rs5.38 trillion within four months will be a major challenge and could lead to increased scrutiny of taxpayers and businesses.
Despite the hurdles, the FBR has assured the IMF that it remains committed to meeting the revised revenue target through stronger compliance measures, improved documentation of the economy, and recovery of outstanding tax dues.