ISLAMABAD – The Federal Board of Revenue (FBR) is eyeing a potential Rs. 200 billion recovery as the verdict on long-pending super tax cases draws closer, a development that could play a pivotal role in bridging Pakistan’s revenue shortfall amid ongoing talks with the International Monetary Fund (IMF).
According to sources, the decision on these cases is expected by the end of September or early October. Should the ruling favor the FBR, authorities intend to initiate immediate recovery measures. In the event of an unfavorable outcome, however, officials have informed the IMF that additional steps worth Rs. 180–200 billion will be required to meet fiscal targets.
The FBR has also estimated revenue losses of Rs. 55–60 billion due to recent floods and has sought leniency from the IMF on tax collection targets. The Fund, while acknowledging the challenges, has pressed Pakistan to expand its tax base instead of relying on already elevated tax rates.
To shore up revenues, enforcement actions and the introduction of a temporary flood levy are under active consideration. Discussions further extended to the National Finance Commission (NFC) Award, with proposals to reduce the provincial share from the existing 82% and to devolve the Benazir Income Support Programme to provinces, urging them to mobilize their own resources.
Meanwhile, President of Pakistan has appointed the Finance Minister as Chairman of the 11th NFC Award. Government spending rose to a record 21.4% of GDP in FY2024-25, compared to 19.5% in the previous year, while the fiscal deficit crossed Rs. 6.1 trillion.
