The Federal Board of Revenue (FBR) has not met its tax collection targets for the first four months (July to October) of the fiscal year 2024-25, nor for October 2024.
In October, the FBR experienced a revenue shortfall of Rs111 billion, contributing to a total shortfall of Rs191 billion over the first four months. This shortfall forces the government to choose between increasing taxes on the public or renegotiating terms with the International Monetary Fund (IMF) regarding the $7 billion loan.
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The lack of revenue could hinder the release of the second loan tranche from the IMF. In October, the FBR collected Rs879 billion in taxes, which was Rs111 billion below the target of Rs990 billion.
For the first four months of the fiscal year, the FBR’s total tax collections reached Rs3,441 billion, falling short by Rs191 billion from the target of Rs3,632 billion. In September, Pakistan received the first installment of the loan from the IMF as part of a $7 billion, 37-month Extended Fund Facility.
