Key Points
- Revenue collection reaches Rs 11.26 trillion ($40.2 billion)
- FBR achieves 99.8% of revised 11-month target
- June target remains consistent with annual goal
ISLAMABAD: Pakistan has achieved 99.8 per cent of its revised tax collection target for the first eleven months of fiscal year 2025-26, with revenues reaching Rs 11,257 billion (about $40.2 billion).
Revenue collection reflected a strong fiscal performance despite a challenging economic environment at home and abroad.
Official figures showed that the Federal Board of Revenue collected Rs 994 billion in May, achieving 97 per cent of the month’s target and keeping the government firmly on course to meet its revised annual revenue objective.
𝗧𝗮𝘅 𝗧𝗮𝗿𝗴𝗲𝘁𝘀: 𝗙𝗮𝗰𝘁𝘀 𝗠𝗮𝘁𝘁𝗲𝗿 𝗠𝗼𝗿𝗲 𝗧𝗵𝗮𝗻 𝗛𝗲𝗮𝗱𝗹𝗶𝗻𝗲𝘀
Some media reports are repeatedly citing an "Rs864 billion tax shortfall" based on the FBR target of Rs14,130 billion at the start of FY26. This is misleading.
Tax targets are set before the…
— Khurram Schehzad (@kschehzad) May 31, 2026
The achievement comes amid evolving macroeconomic conditions that prompted the government to recalibrate its fiscal projections during the year in consultation with the International Monetary Fund.
Officials noted that the original annual revenue target of Rs 14,130 billion was set before the start of the fiscal year. The target setting was based on assumptions about economic growth, inflation, imports, industrial production, exchange rates, and interest rates.
As economic conditions changed, the target was revised to around Rs 13,000 billion to reflect updated realities.
According to officials, factors influencing the revision included lower-than-expected inflation, a stronger Pakistani rupee than originally projected (before the beginning of the outgoing financial year in June 2025).
The target revision was also essential in shifting growth dynamics, weather-related disruptions, including floods, and international geopolitical developments affecting energy and commodity markets, the officials said.
They said such adjustments are a routine feature of fiscal management and are designed to ensure that revenue and expenditure projections remain aligned with prevailing economic conditions.
With cumulative collections reaching Rs 11,257 billion by the end of May, the Federal Board of Revenue has effectively met its revised target for the first eleven months of the fiscal year.
The June revenue target has been set at Rs 1,727 billion under the revised fiscal framework. Officials pointed out that tax authorities collected Rs 1,502 billion in June 2025.
Accordingly, the current target requires growth of approximately 15 per cent, which remains consistent with the revised annual objective.
Officials said the latest figures show that tax collection remains on track and do not support assertions of a major revenue shortfall.
They also maintained that there is no basis for speculation about extraordinary tax collection or enforcement measures in the final month of the fiscal year.
The government has urged observers to assess fiscal performance against updated targets and current economic conditions rather than against benchmarks established before the revisions, in consultation with the IMF.
