Pakistan and the International Monetary Fund are set to hold economic review talks in Islamabad tomorrow, with the IMF seeking a detailed report on the country’s revenue shortfall.
The Federal Board of Revenue (FBR) will present updated data on tax collections during the discussions.
According to sources, Pakistan recorded a tax revenue shortfall of Rs329 billion during the first six months of the current fiscal year. Authorities are expected to explain the decline in key revenue streams, including sales tax and income tax, to the IMF delegation, which is visiting for the third economic review.
The original tax target for the current fiscal year was set at Rs14.131 trillion but was later revised downward by Rs152 billion to Rs13.979 trillion. The FBR has also failed to meet the tax collection target for the first eight months of the fiscal year.
Official documents show a cumulative shortfall of Rs429 billion from July to February, including an Rs85 billion gap in February alone. Against a February target of Rs1.029 trillion, tax collection stood at Rs944 billion. Overall, Rs8.121 trillion was collected between July and February against a target of Rs8.55 trillion.
Despite the shortfall, tax collection during this period was 11 percent higher than the same period last year. Income tax collections reached Rs3.956 trillion against a target of Rs4.098 trillion, while sales tax stood at Rs2.783 trillion compared to the Rs3.028 trillion target. Federal excise duty exceeded expectations, generating Rs532 billion against a Rs526 billion target, whereas customs duty collections totaled Rs850 billion against a target of Rs898 billion.
The documents indicate that 95 percent of the eight-month target was achieved, while the FBR issued refunds exceeding Rs385 billion from July to February. In February, collections included Rs443 billion in income tax, Rs336 billion in sales tax, Rs67 billion in federal excise duty, and Rs99 billion in customs duty.
