The Federal Board of Revenue (FBR) is facing a significant shortfall in meeting its tax collection target for the fiscal year 2024-25.
Despite reassurances that no new tax measures will be introduced in the remaining months of the fiscal year, the FBR is struggling to bridge the revenue gap.
According to official data, the FBR collected Rs 7.35 trillion during the first eight months (July–February) of FY25, falling short of the assigned target of Rs 7.95 trillion. This represents a massive shortfall of over Rs 600 billion in tax collection, raising concerns about whether the annual target can still be met.
In February 2025 alone, the FBR provisionally collected Rs 850 billion against a set target of Rs 983 billion, resulting in a shortfall of Rs 133 billion for the month. With only four months remaining in the fiscal year (March to June), the FBR now needs to collect an additional Rs 5.62 trillion to achieve the ambitious annual tax collection target of Rs 12.97 trillion.
To address this shortfall, FBR officials have assured the International Monetary Fund (IMF) that they are making serious efforts to meet the tax target. Their strategy includes enhanced enforcement, increased audits, and expediting the resolution of pending revenue cases in courts, which involve approximately Rs 2.7 trillion.
Tax authorities are also focusing on broadening the tax base by identifying new taxpayers and improving compliance among existing ones. Efforts are underway to strengthen digital monitoring and close loopholes in revenue collection, which could contribute significantly to reducing the shortfall.
The tax target for FY25 is crucial for Pakistan’s economic stability, as it directly impacts fiscal policies and the government’s ability to meet its expenditure commitments. While the FBR remains optimistic, experts caution that without substantial improvements in collection mechanisms and economic growth, meeting the tax target will remain a formidable challenge.
As the fiscal year progresses, stakeholders will closely monitor whether the FBR can overcome the shortfall and achieve its ambitious tax collection target amid mounting economic pressures.