FBR beats two-month tax target by PKR 12 Bn despite weak August collection

Pakistan's Federal Board of Revenue collected PKR 1.722 trillion in taxes during July and August, the first two months of the current fiscal year. The amount exceeded FBR's PKR 1.710 trillion target by PKR 12 billion. The result came despite slowing revenue growth and a decline in income tax receipts, according to FBR sources.

How much tax did FBR collect in the first two months of FY27?

FBR collected PKR 1.722 trillion between July and August, beating its two-month target of PKR 1.710 trillion by PKR 12 billion. Strong July collection offset a shortfall in August, when FBR gathered PKR 902 billion against a PKR 930 billion monthly target, missing that goal by about PKR 28 billion.

Why is FBR's revenue growth below the IMF target?

Provisional figures show tax collection rose by PKR 55 billion, or 3.3%, compared with the same period last year. This growth rate falls well short of the 17.4% increase FBR needs to hit its annual PKR 15.263 trillion tax collection target. That target was agreed under Pakistan's programme with the International Monetary Fund.

Which taxes drove FBR's collection during July-August?

Sales tax was the main contributor to revenue growth, reaching PKR 719 billion. This figure came in PKR 85 billion above target and PKR 86 billion, or 14%, higher than the same period last year. About PKR 496 billion, or 69% of total sales tax collection, was gathered at the import stage.

Income tax collection exceeded PKR 685 billion but fell PKR 74 billion short of the two-month target. It was also PKR 29 billion, or 4%, below the equivalent period last year. Federal excise duty collection totalled PKR 118 billion, broadly matching the target and PKR 3 billion higher year-on-year. Customs duty collection stood at PKR 198 billion, slightly below target and largely unchanged from a year earlier.

How much of FBR's revenue came from imports?

More than PKR 810 billion, or about 47% of total tax revenue during the two months, was collected at the import stage. FBR sources said the scope for tax evasion is comparatively limited at this stage. The authority also issued PKR 155 billion in tax refunds during the period, around PKR 31 billion more than the same period last year.

What other measures has FBR taken to boost collection?

FBR continued expanding its Point-of-Sale network among large retailers, integrating about 17,337 retailers during FY2025-26. This increased the registered base by 31% within a year. However, digital integration in several service sectors remains stalled because final income tax rules have yet to be notified.

The August shortfall points to the scale of the challenge facing FBR. The authority must accelerate revenue growth substantially to meet its annual collection target while maintaining commitments under Pakistan's IMF-supported economic program.