Pakistan plans fresh revenue measures as FBR faces likely shortfall in FY26 collections
Pakistan’s government is expected to introduce around 430 billion rupees in new tax measures in the federal budget for 2026–27 (FY27) as it seeks to strengthen revenues amid pressure from lower-than-targeted collections, according to official documents.
The Federal Board of Revenue (FBR) is likely to miss its downward revised tax collection target of 13.98 trillion rupees for the current fiscal year ending June 2026, with projected collections estimated at around 13.43 trillion rupees.
Officials said the government is currently considering setting the FBR’s tax collection target for FY27 at 15.26 trillion rupees, lower than the 15.71 trillion rupees target discussed with the International Monetary Fund.
According to preliminary projections, direct tax collection is estimated at 7.41 trillion rupees in the next fiscal year, while federal excise duty collection is expected to reach 1 trillion rupees.
Sales tax revenues are projected at 4.73 trillion rupees and customs duties at 1.65 trillion rupees for FY27.
Sources said the estimates are based on assumptions that the FBR manages to collect around 13.47 trillion rupees during the current fiscal year.
Officials warned that any further revenue shortfall before the end of FY2025–26 could create additional pressure on fiscal management and complicate revenue generation efforts in the next budget cycle.
Pakistan remains under an IMF-supported economic reform programme, where tax collection performance and fiscal consolidation remain key policy priorities.
Economists say the government may have to rely on a combination of new taxes, withdrawal of exemptions, and administrative enforcement measures to bridge the revenue gap and meet fiscal targets.
