Islamabad, August 30, 2025 – The devastating floods that have swept across several regions of Pakistan are creating serious hurdles for the Federal Board of Revenue (FBR) in meeting its monthly tax collection targets.
Officials reported that the FBR has so far managed to collect Rs880 billion in August 2025, falling short of the Rs951 billion target by nearly Rs20 to Rs25 billion.
The natural disaster has disrupted business activities, trade flows, and consumption patterns, directly impacting revenue inflows. In particular, the FBR noted a significant decline of Rs40 to Rs45 billion in tax receipts due to reduced consumption of electricity and gas in flood-affected areas. This highlights how floods not only damage infrastructure but also slow down economic activity, making revenue collection more challenging.
In the first two months of FY2025-26 (July and August), the FBR has collected Rs1.64 trillion – Rs762 billion in July and Rs880 billion so far in August – against a cumulative target of Rs1.7 trillion. Officials expressed hope that final reconciliations might push August’s figure to Rs910 billion, though it would still miss the set target.
Looking ahead, the FBR has set an ambitious tax collection goal of Rs1.385 trillion for September 2025. Given the current shortfall, achieving the cumulative quarterly target of Rs3.08 trillion by September 30 will require an even higher collection of Rs1.44 trillion in the next month.
For the full fiscal year, the FBR must generate Rs14.13 trillion by June 30, 2026 – a significant jump from last year’s Rs11.72 trillion, which fell short of the revised Rs12.97 trillion target. Officials stress the need for expanding the tax base, documenting more sectors of the economy, and improving enforcement to sustain revenue growth amid challenges posed by recurrent floods.