The International Monetary Fund may call for new contingency tax measures in Pakistan if the country’s revenue collection continues to lag targets in the second quarter of the current fiscal year, according to people familiar with ongoing policy talks.
Pakistan’s Federal Board of Revenue (FBR) collected Rs 2.89 trillion in the first quarter of fiscal 2025-26, falling short of its Rs 3.08 trillion target by Rs 198 billion, officials told ProPakistani. September’s collection also missed the mark, with Rs 1.23 trillion raised against a target of Rs 1.37 trillion.
The shortfall has raised concerns that the FBR could miss its ambitious annual tax target of Rs 14.13 trillion by more than Rs 400 billion, potentially forcing a downward revision. While discussions on revising the target are underway, no final decision has been made.
Finance Minister Muhammad Aurangzeb has ruled out the possibility of a mini-budget for now, saying no new tax measures are currently under consideration. “Till now, no work on new taxation measures has been started in the FBR,” a senior official said.
The FBR is instead focusing on reforms to boost capacity and enforcement, including hiring 1,600 new auditors and rolling out digital production monitoring in key sectors such as sugar, fertilizer, cement, beverages, tobacco, poultry, and textiles. The agency is also integrating data sources and digitalizing processes to better track economic activity and identify tax evaders, with plans to use AI-driven risk parameters for audit selection.
These reforms have helped lift Pakistan’s tax-to-GDP ratio from 8.8% in 2023-24 to 10.24% in 2024-25, according to FBR data. Enforcement revenue has increased eightfold year-on-year, and the new Faceless Customs Appraisement initiative has boosted revenue per goods declaration by 17.3%.
Still, the IMF remains concerned about the risk of a persistent revenue gap. In its latest review under the Stand-By Arrangement, the Fund highlighted eight contingency measures previously agreed with Pakistan, which could be triggered if collections continue to fall short.
These include raising the sales tax on textiles and leather, imposing a federal excise duty on sugar, and increasing various advance and withholding taxes on imports, supplies, services, and contracts.
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Why the GOP wants to maintain/continue Non Filer category. I wonder why we cannot have just one list “Filer”. Since they are themselves part of this scheme, they will never abolish non filer category. Also I wonder why IMF does not force the government to abolish this non filer category and they keep on imposing new taxes, as they keep the non filers escort free
IMF and GOP should first think of further pressing of already pressed TAX payer the salaried individual who us paying double tax both direct and indirect taxes where is GOP is failed convert non filers ( Shop keepers, Butchers, the middle men(Tehkedars in various professions), Agricultural tax on big Landlords to filers because of various reasons that should be pointed out by IMF and GOP to depts involved in tax collection, instead of adding tax GST, Dam fund, TV fee, Surcharge, extra surcharge or xyz in bills and petrol.
im a salaried person..pay arround 60k income tax monthly..then extra taxes on electricity and each and everything i buy….what do i get in return after these stupid taxes and being a good citizen???Yes more taxes.cause lets keep milking the ones who have no other option to hide their income…it feels like im being penalized for staying in pakistan.already in process to leave this shithole..
this is just a country for corrupt people and politicians..
its not the govt..Tricksters and corrupt people are considered intelligent here..screw this country and whole culture and infrastructure..its rotten to its core…its a big pile of shit that people love eating again and again hoping for a sweeter taste..