Islamabad — As the International Monetary Fund (IMF) mission visits Pakistan to conclude the third review under the $7 billion Extended Fund Facility (EFF) programme, the Federal Board of Revenue (FBR) is grappling with a significant revenue shortfall in February 2026, raising concerns over the country’s fiscal targets.
Provisional data shows that the FBR collected Rs918 billion during the first 27 days of February against a monthly target of Rs1.029 trillion, reflecting a shortfall of Rs111 billion. The tax authority hopes to push collections closer to Rs950 billion by the end of the month, which officials say would still fall short of the desired target but be considered a relative achievement.
To bridge the gap and facilitate taxpayers, the FBR has directed that all Large Taxpayer Offices (LTOs), Medium Taxpayer Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs) remain open on Saturday, February 28, 2026, treating it as a normal working day for the collection of taxes and duties.
During the first eight months of the current fiscal year (July–February FY2025-26), the FBR has provisionally collected Rs8,094 billion against the assigned target of Rs8,550 billion, posting a cumulative shortfall of Rs456 billion. In the first seven months alone, collections stood at Rs7,176 billion versus a target of Rs7,521 billion, leaving a gap of Rs345 billion.
Officials attribute part of the February slowdown to a government directive instructing tax authorities not to attach bank accounts during the month, despite a favorable verdict by the Federal Constitutional Court regarding the Super Tax. While the FBR collected substantial Super Tax revenue in January, collections in February remained limited, with only Rs40 billion gathered against a target of Rs70 billion for the next instalment.
The widening revenue gap is likely to be a key discussion point during the ongoing IMF review talks, which formally begin in Islamabad on Monday. If the shortfall persists, the Ministry of Finance may be forced to seek a further reduction in the FBR’s annual tax collection target or implement expenditure cuts to maintain the agreed fiscal deficit and primary balance targets.
The IMF has already revised Pakistan’s tax collection target downward from Rs14,130 billion to Rs13,979 billion for the current fiscal year. Any additional downward revision could intensify pressure on public spending, particularly the Public Sector Development Program (PSDP), which traditionally bears the brunt of fiscal tightening.
With the IMF closely monitoring revenue performance, the coming days will be crucial for the FBR as it strives to narrow the gap and reassure lenders about Pakistan’s commitment to fiscal discipline.