IMF projects Pakistan's FY27 tax target at PKR 15.26 trillion

Pakistan's tax collection target for the next fiscal year could be set at PKR 15.26 trillion, according to projections in the latest International Monetary Fund (IMF) review report.

The estimates have been unreleased ahead of the federal FY2026-27 budget, likely to be unveiled on June 5

What is Pakistan's tax collection target for FY27?

According to the IMF, direct taxes are projected at PKR 7.41 trillion and sales tax at PKR 4.73 trillion. Federal excise duty is estimated at PKR 1.04 trillion and customs duty at PKR 1.65 trillion.

The projections appear in the IMF's latest review report on Pakistan's economy.

They outline expected revenue and expenditure estimates, including higher targets for direct taxes, petroleum levy, and debt servicing.

How much will Pakistan collect through the petroleum levy?

The collection of Petroleum Development Levy — a fixed tax charged on fuel — in the current fiscal year is likely to reach PKR 1.55 trillion, exceeding the original target of PKR 1.47 trillion.

For the next fiscal year, petroleum development levy collections are projected at PKR 1.73 trillion. The higher target reflects expectations of increased levy rates.

Gas surcharge collections this fiscal year are expected to reach PKR 134 billion, against a target of PKR 90 billion. The next fiscal year estimate stands at PKR 151 billion.

How much will Pakistan earn in non-tax revenue?

The IMF projected non-tax revenues for the current fiscal year at PKR 3.7 trillion, up from the targeted PKR 3.68 trillion.

Non-tax revenues for the next fiscal year are estimated to decline to PKR 2.77 trillion.

How much will Pakistan spend in FY27?

Pakistan's total expenditures for the next fiscal year are projected at PKR 26.42 trillion. Federal government expenditures are estimated at around PKR 16.59 trillion.

Debt servicing is expected to remain the largest expenditure component. The federal government is projected to spend PKR 7.82 trillion on interest payments and debt obligations next fiscal year.

Domestic debt repayments are estimated at PKR 6.65 trillion. External debt repayments are projected at PKR 1.11 trillion.

How much will Pakistan spend on defense in FY27?

Defense expenditures for the current fiscal year are expected to remain slightly below budgeted estimates. They are projected at PKR 2.56 trillion against the allocated PKR 2.58 trillion.

Defense spending for the next fiscal year is projected at PKR 2.67 trillion.