ISLAMABAD: The Federal Board of Revenue (FBR) has firmly rejected claims of a major tax shortfall, maintaining that revenue collection remains strong and aligned with revised fiscal targets agreed upon with international financial institutions.
According to FBR Advisor Khurram Shahzad, reports suggesting an Rs864 billion tax shortfall are based on inaccurate comparisons with an earlier annual revenue target of Rs14.13 trillion. He clarified that after consultations with the International Monetary Fund (IMF), the revenue target for the fiscal year was revised downward to approximately Rs13 trillion, making comparisons with the original target misleading.
Khurram Shahzad stated that revenue performance should be evaluated against the revised benchmark rather than outdated projections. He emphasized that fluctuations in tax collection are a normal part of economic adjustments, particularly in response to changing inflation levels, import volumes, and broader macroeconomic conditions.
Official figures released by the FBR show that tax collection in May 2026 reached Rs966 billion, reflecting a 7 percent increase compared to the same month last year. Although the collection remained Rs184 billion below the monthly target of Rs1.15 trillion, authorities noted that revenue growth remained positive despite economic challenges.
On a month-to-month basis, tax collection recorded a modest increase of 1 percent, indicating steady performance. During the first eleven months of fiscal year 2025-26, the FBR collected a total of Rs11.227 trillion in taxes. While this amount was Rs868 billion below the revised target of Rs12.095 trillion for the period, officials stressed that the overall trend reflects improved tax compliance and sustained revenue growth rather than a fiscal crisis.
The FBR remains optimistic about achieving its June 2026 revenue target of Rs1.727 trillion. Officials believe that ongoing enforcement measures, enhanced compliance initiatives, and improved economic activity will support stronger collections during the final month of the fiscal year.
Meanwhile, the government is considering reducing transaction taxes in the real estate sector as part of the upcoming federal budget. Officials have reportedly informed the IMF about proposals aimed at lowering property transaction costs to stimulate market activity and support the construction industry.
Economic experts believe that increased activity in the real estate and construction sectors could help broaden the tax base, boost investment, create employment opportunities, and contribute positively to Pakistan’s overall economic growth in the coming fiscal year.
