ISLAMABAD: As Pakistan continues its virtual negotiations with the International Monetary Fund (IMF) over the upcoming federal budget, the Federal Board of Revenue (FBR) has set an ambitious tax collection target of Rs14,305 billion for the next fiscal year.
According to official documents, the FBR anticipates collecting Rs13,275 billion based on current economic growth and inflation trends. The remaining Rs1,030 billion is expected to come from new enforcement actions and policy measures, finalized during discussions with the IMF.
Sources reveal that the IMF has recommended Rs600 billion in additional revenue through stricter enforcement efforts. The Fund also stressed the urgent need to document the tobacco, beverage, and real estate sectors, proposing reforms including real-time production tracking, comprehensive documentation frameworks, and sector-wide transformation plans.
The IMF has reiterated that Pakistan must stay on track to meet the primary balance target agreed under its ongoing bailout program. It also urged swift resolution of thousands of pending tax cases in the judiciary to unblock substantial revenue.
Despite the new target, the FBR faces credibility challenges after missing its collection goal by Rs831 billion in the first 10 months of the current fiscal year. Data shows the FBR gathered Rs9.299 trillion from July to April against a target of Rs10.130 trillion, largely due to a slump in import volumes and lower-than-expected inflation.
As Pakistan prepares for a tough fiscal year, the tax target—among the highest in the country's history—will test the government's ability to widen the tax base, implement reforms, and balance IMF demands with domestic economic pressures.
The IMF delegation is expected to arrive in Islamabad next week to conclude the final round of budget talks by May 23.
