Islamabad, July 29, 2025 – The federal government has significantly increased the budgetary allocation for the Federal Board of Revenue (FBR) for the fiscal year 2025-26, earmarking Rs83.10 billion for its expenditures. This reflects a 41% jump compared to Rs58.80 billion allocated in the previous fiscal year.
According to official budget documents, the increase in funding will support the FBR’s growing salary commitments and operational expenses. The FBR, Pakistan’s top tax authority, plays a crucial role in collecting revenue for the government and implementing fiscal policies. During FY2024-25, the FBR collected Rs11.74 trillion, showing a 26.3% increase from Rs9.30 trillion in the preceding year. Despite this improvement, the agency missed its revised collection target of Rs11.90 trillion.
A detailed breakdown of the FBR’s allocation reveals several key components. Employee-related expenses are set at Rs28.40 billion, compared to Rs26.60 billion last year. Out of this, Rs6.20 billion is allocated for officers’ salaries and Rs5.85 billion for staff pay. Allowances are estimated to rise to Rs16.35 billion, up from Rs14.83 billion in FY2024-25.
The operating expenses of the FBR have seen a notable increase, now budgeted at Rs37.15 billion—up 71.35% from Rs21.68 billion a year earlier. This sharp rise reflects the growing cost of maintaining tax operations across the country.
The budget also includes Rs1.089 billion for retirement benefits, maintaining the same level as last year. Additionally, Rs3.89 billion has been allocated for grants, subsidies, and loan write-offs for FBR employees, compared to Rs3.06 billion in FY2024-25.
This increased allocation is expected to help the FBR strengthen its tax administration infrastructure and improve revenue collection efficiency in the coming year.