Pakistan misses FY25 tax collection target despite multiple revisions

Pakistan's tax collection authority — the Federal Board of Revenue (FBR) — has failed to meet its tax collection target for the fiscal year 2024-25 (FY25) despite two downward revisions.

Initially, the FBR had set an ambitious revenue target of PKR 12,977 billion. However, with economic challenges and collection bottlenecks, the target was first revised to PKR 12,332 billion, and subsequently, further adjusted to PKR 11,900 billion.

Despite these revisions, the FBR still fell short of the original target by PKR 1,470 billion. Collection was PKR 832 billion lower than the revised target and PKR 400 billion than the second revised target.

As of the evening of June 29, total collections stood at PKR 11,280 billion. The FBR faces the daunting task of collecting PKR 620 billion in a single day to meet the final projection.

However, current estimates indicate total collection may reach PKR 11,500 billion.

This marks a historic shortfall for the revenue authority, raising questions about revenue planning, collection mechanisms, and the broader economic climate.