Islamabad, January 1, 2026 – The Federal Board of Revenue (FBR) has reported a revenue shortfall of over Rs336 billion during the first half (July–December) of fiscal year 2025-26, raising concerns over meeting Pakistan’s full-year fiscal targets.
According to provisional data, the FBR collected Rs6,154 billion during the first six months against the target of Rs6,490 billion, achieving 94.8 percent of its revenue target. The gross collection during the period stood at Rs6,447.4 billion, while tax refunds of Rs292.6 billion brought the net collection to Rs6,154.8 billion.
The shortfall in December 2025 added pressure on the government to consider contingency measures under agreements with the International Monetary Fund (IMF). The provisional tax collection for December reached Rs1,421 billion against a monthly target of Rs1,446 billion, reflecting a shortfall of Rs25 billion.
In response, the government has revised the annual FBR target for FY26 downward, from Rs14,307 billion to Rs13,979 billion, a reduction of Rs328 billion.
Authorities have assured the IMF that additional revenue measures will be implemented if shortfalls continue. These measures include:
• Increasing Federal Excise Duty (FED) by 5% on fertilizers and pesticides
• Introducing FED on high-value sugary items
• Broadening the sales tax base by moving select items to the standard rate
These steps are intended to safeguard fiscal targets and ensure the country meets its revenue commitments despite the underperformance in the first half of the fiscal year.
The government and FBR remain committed to stabilizing revenue collection and addressing any gaps promptly, reflecting a proactive approach to fiscal management amid economic challenges.