Pakistan’s FBR faces PKR 372B shortfall, eyes super tax to meet IMF targets
FBR collected PKR 7.147 trillion from July to January, against a target of PKR 7.521 trillion
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
IMF has asked Pakistan’s government to cover its revenue gap by fully collecting the Super Tax.
Pakistan’s Federal Board of Revenue (FBR) is facing a revenue shortfall of PKR 372 billion during the first seven months of the current fiscal year, from July through January, according to official documents.
As of late January 2026, the tax authority had collected PKR 986 billion for the month, falling short of its PKR 1.031 trillion target, officials familiar with the matter said. Sources indicated that the remaining collection to meet January’s monthly target was expected to be completed by the end of the day, as all large, medium, corporate, and regional tax offices remained open.
Overall, the FBR collected PKR 7.147 trillion from July to January, against a target of PKR 7.521 trillion for the period.
In January, income tax collection stood at PKR 465 billion, surpassing the target of PKR 452 billion. However, indirect taxes lagged behind expectations. Sales tax collection reached PKR 352 billion, missing the PKR 387 billion target. Customs duty collection stood at PKR 107 billion against a target of PKR 126 billion, while federal excise duty amounted to PKR 61 billion, short of the PKR 65 billion goal.
The FBR issued PKR 47 billion in tax refunds during January and PKR 340 billion from July through January, compared with PKR 314 billion during the same period last fiscal year. Officials expect around PKR 200 billion to be collected under the Super Tax between January and March.
Under an agreement with the International Monetary Fund (IMF), Pakistan has committed to collecting PKR 9.917 trillion in tax revenue by March 2026. To meet this target, the FBR will need to raise more than PKR 2.765 trillion over the next two months, officials said. During the corresponding period of the previous fiscal year (2024–25), the FBR collected PKR 6.699 trillion in taxes.
“This shortfall highlights structural weaknesses in Pakistan’s tax system, particularly in indirect taxes and customs,” said an analyst. “While income tax performance shows some resilience, meeting the IMF target will require extraordinary measures, aggressive enforcement, and a stronger economic rebound. Without broadening the tax base, reliance on short-term fixes like Super Tax collections may not be sustainable.”
The IMF has asked Pakistan’s government to cover its revenue gap by fully collecting the Super Tax, sources said.
On Tuesday, the Federal Constitutional Court (FCC) rejected petitions filed against the Super Tax. The court dismissed objections about whether the case could be heard and upheld Section 4B of the Income Tax Ordinance, 2001. It also declared parts of earlier High Court rulings related to Section 4C as partially invalid.
The court’s decision has cleared the way for the FBR to speed up recovery of Super Tax dues.
Sources said the IMF and the FBR held virtual talks after the court ruling. During the discussions, the IMF welcomed the decision and urged Pakistan to meet its tax targets. The IMF has asked that all pending Super Tax recoveries be completed within the current month.
Estimates show that Super Tax collections could reach nearly PKR 380 billion by June 2026. Of this amount, about PKR 300 billion is expected to be recovered in the coming days, while the remaining PKR 80 billion is expected by June 2026.
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