Islamabad, December 27, 2024 – The Finance Ministry on Friday disclosed a significant shortfall in revenue collection by the Federal Board of Revenue (FBR) up to November 2024. This revelation came as part of the monthly economic outlook for December 2024.
According to the report, the Finance Ministry stated that the FBR collected Rs 852 billion in November 2024, reflecting a 15.8% increase compared to Rs 736 billion collected in the same month last year.
Despite, reportedly, this growth, the FBR fell short of its revenue collection target of Rs 1 trillion set for November 2024.
Over the first five months of the fiscal year 2024-25 (July to November), the Finance Ministry reported that the FBR collected Rs 4.295 trillion. This represents a 23.2% increase from Rs 3.485 trillion collected during the corresponding period of the previous fiscal year.
However, reportedly, the FBR still missed the revenue collection target of Rs 4.64 trillion set for this period.
For the current fiscal year, the FBR has been tasked with achieving a tax collection target of Rs 12.913 trillion, which is a 38.9% increase over the Rs 9.311 trillion collected in the previous fiscal year. Despite the shortfall, the Finance Ministry remains optimistic about meeting these ambitious targets.
The Finance Ministry emphasized the government’s efforts to sustain economic recovery. Achieving agricultural production targets is a key priority, with support being extended to farmers to meet desired crop yields. However, challenges such as below-normal rainfall may cause water stress, particularly during critical stages for Rabi crops like wheat and barley in rain-fed zones.
On the industrial front, the Finance Ministry highlighted the robust performance of key sectors that are driving large-scale manufacturing (LSM). Notably, the automobile and cement industries demonstrated strong growth in November, providing a significant boost to their allied sectors. The interconnectedness of industrial activities is expected to reinforce overall economic resilience.
Additionally, the easing of monetary policy in December is anticipated to stimulate economic activity further. Increased private-sector credit demand signals growing confidence in the economy, which could lead to higher production levels and enhanced output.
The Finance Ministry also noted stability in external accounts, supported by remittance inflows, export growth, and stable imports. Exchange rate stability and contained inflation, projected at 4.0-5.0% for December 2024, are expected to complement these improvements. Furthermore, prudent fiscal management and higher revenues during July-October have created fiscal space for development spending, laying the groundwork for sustainable economic growth.
