Pakistan and IMF Negotiations Lead to Revised FBR Tax Target as Rs1.126 Trillion Reduction Refined

Islamabad: Significant developments have emerged in ongoing negotiations between Pakistan and the International Monetary Fund (IMF), with the Federal Board of Revenue (FBR) facing a second downward revision in its annual tax collection target.

According to reports, the FBR’s original tax target has been reduced by a total of Rs1,126 billion after multiple revisions. The initial target of Rs14,131 billion was first revised downward to Rs13,979 billion, and has now been further adjusted to Rs13,005 billion.

Despite these revisions, the FBR continues to struggle with revenue collection. During the first 11 months of the fiscal year, the shortfall against the earlier revised target stood at Rs866 billion. However, after the latest adjustment, the projected gap has narrowed significantly to just Rs25 billion.

Official data shows that from July to May, income tax collection reached Rs5,602 billion, while sales tax amounted to Rs4,215 billion. Federal excise duty collections stood at over Rs744 billion, and customs duty revenues reached approximately Rs1,220 billion during the same period.

During the first 11 months of the fiscal year, around Rs550 billion in refunds were also issued. In May 2026 alone, the FBR collected approximately Rs966 billion in total taxes. Monthly breakdowns show Rs459 billion collected under income tax, over Rs386 billion under sales tax, Rs72 billion from federal excise duty, and nearly Rs100 billion from customs duty. Refunds exceeding Rs50 billion were also issued in May.

Officials say the revisions reflect ongoing negotiations with the IMF and the challenges in meeting ambitious revenue targets amid economic constraints.