The Federal Board of Revenue (FBR) has reported a significant shortfall in tax collection for March 2026, collecting Rs1,187 billion against the monthly target of Rs1,367 billion, sources said. This reflects a gap of Rs180 billion, highlighting ongoing fiscal pressures on Pakistan’s revenue system.
According to official breakdowns, income tax remained the largest contributor, generating Rs682 billion during the month. Sales tax collection stood at Rs318 billion, while federal excise duty (FED) amounted to Rs77 billion. Customs duty contributed Rs105 billion to the overall revenue. Despite steady inflows from major tax heads, the total collection fell short of expectations.
For the cumulative period of July to March (2025–26), the FBR collected Rs9,307 billion compared to the downward revised target of Rs9,917 billion, resulting in a shortfall of Rs610 billion. The revenue performance indicates continued challenges in meeting fiscal targets set for the current financial year.
The FBR has yet to officially release the detailed revenue figures for Tuesday, adding to uncertainty regarding the final assessment of the month’s performance.
Initially, the FBR’s tax collection target for the fiscal year 2025–26 was set at Rs14,307 billion. However, due to economic constraints and lower-than-expected revenue inflows, the target was revised downward to Rs13,979 billion, reflecting a reduction of Rs328 billion. It was later further reduced to Rs13,450 billion, according to officials.
The persistent shortfall underscores the need for improved tax administration, broader tax base expansion, and enhanced compliance measures as Pakistan continues to navigate fiscal challenges.