Islamabad, Pakistan – Web Desk: Pakistan’s tax authority, the Federal Board of Revenue, has recorded a revenue shortfall of Rs450 billion during the first eight months (July–February) of the 2025–26 fiscal year, raising the likelihood of a second downward revision of the annual tax target.
According to official sources, the FBR collected approximately Rs8.1 trillion in taxes during the period, falling Rs450 billion short of the revised target. Compared with the original annual projection, the shortfall widens to Rs670 billion.
The government had initially set an annual revenue target of Rs14.13 trillion. However, following negotiations with the International Monetary Fund, the target was reduced by Rs216 billion. Officials are now considering a further significant downward revision, with talks expected next week with the IMF.
To bridge the revenue gap and maintain the agreed primary budget surplus target under the IMF programme, the government has increased the petroleum levy and implemented substantial cuts in development spending.
Economic analysts, however, argue that such measures may create a temporary appearance of fiscal stability rather than addressing structural weaknesses in tax collection and revenue generation.
The revenue shortfall adds pressure on Pakistan’s fragile economy as authorities attempt to stabilise public finances amid ongoing reforms tied to the IMF programme.
