Pakistan's Federal Board of Revenue collected PKR 10.26 trillion in taxes during July-April

Pakistan's Federal Board of Revenue collected PKR 10.26 trillion in taxes during July-April of fiscal year 2025-26, falling short of its revised target by PKR 683 billion.

The IMF has refused to lower the full-year target of PKR 13.98 trillion, raising pressure on Islamabad to close the gap in the remaining two months.

How much did FBR collect in the first 10 months of FY26?

The FBR collected PKR 10.26 trillion between July and April, representing a growth of 10.5% over the same period last year. That pace is roughly half the rate needed to stay on track for the annual target.

During the same period, the FBR issued PKR 499 billion in tax refunds, including PKR 51 billion in April alone.

Why did Pakistan miss its tax collection target?

Officials pointed to structural weaknesses in tax collection despite policy adjustments. The 10-month target had already been revised downward, yet the FBR still fell short by PKR 683 billion.

A senior finance ministry official, speaking on condition of anonymity, said the pace of revenue growth is not sufficient to meet the annual goal.

The government is compensating by raising petroleum levy rates and sharply cutting development spending to protect the primary surplus agreed with the IMF.

A second official cautioned that while these measures help meet headline fiscal benchmarks, they create an artificial sense of stability.

What is Pakistan's income tax and sales tax performance so far?

Income tax collection reached PKR 5.08 trillion in July-April, missing its target by PKR 210 billion but rising 13.6% year-on-year. The figure includes more than PKR 200 billion collected as super tax following a favorable court ruling.

Sales tax receipts totaled PKR 3.42 trillion, falling short by PKR 382 billion despite an 8% increase over last year. Federal excise duty stood at PKR 673 billion, up 11% year-on-year but PKR 14 billion below target. Customs duties generated PKR 1.08 trillion, missing the target by PKR 79 billion, with growth of just 3.6%.

How did FBR perform in April 2026?

The FBR collected PKR 956 billion in April against a target of PKR 1.029 trillion, a shortfall of PKR 72 billion. April revenues still rose 13% year-on-year, an increase of PKR 111 billion.

Import-stage tax collection was a relative bright spot, with cumulative receipts reaching PKR 3.86 trillion for the 10-month period, up 14% compared to the previous year.

What does the IMF require from Pakistan on tax collection?

The IMF has tied approval of its third program review, along with the release of roughly $1.2 billion in loan tranches, to Pakistan's ability to recover PKR 322 billion currently stuck in litigation.

The Fund has declined any further reduction in the full-year target of PKR 13.98 trillion. Finance ministry officials warned that without stronger enforcement and policy reforms, meeting the annual target remains a significant challenge.