Islamabad, December 1, 2024 – The Federal Board of Revenue (FBR) is grappling with an expanding revenue shortfall for November 2024, compounding challenges in meeting the national tax agency’s collection targets for the fiscal year.
The FBR was tasked with collecting over Rs 1 trillion in November 2024. However, provisional figures indicate revenue collection reached approximately Rs 855 billion, falling short by Rs 148 billion. Officials expect this figure to rise marginally by Rs 4–5 billion upon final reconciliation and data compilation, but the gap will remain significant.
During the first five months of FY 2024–25 (July–November), the FBR collected Rs 4.295 trillion against a cumulative target of Rs 4.64 trillion, reflecting a shortfall of Rs 344 billion. Despite this, year-over-year growth has been notable, with November 2024 revenues totaling Rs 851 billion compared to Rs 736 billion in November 2023, marking an increase of Rs 115 billion.
Sources attribute the November shortfall to several disruptive factors, including recent political protests and government-imposed lockdowns. These events brought economic activity to a halt for nearly five days, affecting key sectors such as manufacturing, trade, and services. The protests created a climate of uncertainty, severely impacting business operations and subsequently hindering tax collection efforts.
Despite the eventual resolution of the political unrest, its ripple effects lingered throughout the month, contributing to an estimated revenue shortfall of Rs 160 billion against the ambitious target. FBR officials have acknowledged the impact of these disruptions on revenue performance and emphasized the need for stability to achieve fiscal objectives.
Looking ahead, the FBR faces mounting pressure to bridge the cumulative shortfall as the fiscal year progresses. Enhanced enforcement measures, broadening the tax base, and addressing administrative inefficiencies will be critical in boosting collections. However, achieving the full-year target of Rs 9.415 trillion may require additional policy interventions and political stability.
The widening revenue gap underscores the challenges confronting the FBR amidst a volatile political and economic landscape, highlighting the urgency of strategic reforms to meet the country’s growing fiscal needs.
