Karachi, May 31, 2025 – The Federal Board of Revenue (FBR) recorded a notable 19% year-on-year increase in tax collection for May 2025, though it fell short of meeting its monthly target, according to a report by Arif Habib Limited.
In May, the FBR collected Rs907 billion in tax revenue, up from Rs761 billion in the same month last year. Despite this growth, the collection was Rs203 billion below the original target of Rs1,110 billion set for the month. Even when measured against the revised monthly goal of Rs1,055 billion — adjusted in line with the new annual target of Rs12.3 trillion — the FBR still faced a shortfall of Rs148 billion.
On a month-on-month basis, tax collection in May showed a modest rise of 5%, indicating some momentum in revenue generation despite broader economic challenges.
Cumulatively, during the first eleven months of the fiscal year 2024-25 (July to May), the FBR managed to gather Rs10,213 billion in taxes, reflecting a 26% increase compared to the same period in the previous fiscal year. This performance, while impressive in relative terms, still falls short of expectations.
The FBR had originally targeted Rs11.2 trillion for the July–May period, meaning the actual collection lags behind by Rs1,027 billion. Based on the revised annual target of Rs12.3 trillion, the shortfall for the 11-month period is now calculated at Rs471 billion, according to Arif Habib Limited.
Despite the positive year-on-year growth in May, the inability to hit monthly and cumulative targets continues to raise concerns about the FBR’s ability to meet its revised goals by the end of the fiscal year. With just one month remaining, the pressure is mounting on the revenue authority to boost collections and close the gap.
The FBR is expected to ramp up enforcement and compliance measures in June to improve tax receipts and minimize the fiscal shortfall. Analysts warn, however, that structural reforms and broadening of the tax base remain critical for achieving long-term revenue sustainability in Pakistan.