Major Blow to FBR Revenue Collection: Rs321 Billion Shortfall Recorded in First Half of FY 2025–26

Islamabad: The Federal Board of Revenue (FBR) has failed to achieve its tax collection targets for both December 2025 and the first half (July–December) of the ongoing fiscal year 2025–26, resulting in a significant revenue shortfall.

According to sources, the FBR faced a revenue shortfall of around Rs21 billion in December 2025 alone. During the month, provisional net tax collections stood at Rs1,425 billion against the assigned target of Rs1,446 billion.

Figures further reveal that during the first six months of the current fiscal year (July to December), provisional net tax collections amounted to Rs6,169 billion, falling short of the target of Rs6,490 billion by Rs321 billion. The shortfall stood at Rs315 billion during the first five months and widened further after December.

Sources said that once final figures for December are compiled, the shortfall may reduce slightly; however, the overall situation remains alarming .

Due to the substantial shortfall in the first half of the fiscal year, achieving the revised annual tax collection target of Rs13.9 trillion has become increasingly challenging for the FBR. It is pertinent to note that, in view of flood-related devastation across the country, the FBR had persuaded the International Monetary Fund (IMF) to revise the original tax target downward from Rs14.131 trillion to Rs13.9 trillion.

Despite the revision, persistent revenue shortfalls have now put even this adjusted target at risk ⚠️.

FBR officials stated that July 2025 was the only month in the current fiscal year when tax collections exceeded the target. In July, Rs757 billion was collected against a target of Rs748 billion.

However, performance in subsequent months remained below expectations. In August, collections stood at Rs901 billion against a target of Rs950 billion; in September, Rs1,228 billion against Rs1,325 billion; in October, Rs951 billion against Rs1,026 billion; and in November, Rs895 billion against a target of Rs995 billion. December also ended with a shortfall of Rs21 billion.

The continued underperformance has raised serious concerns over fiscal stability and revenue management for the remainder of the financial year.