Pakistan’s tax collection gap widened further in the first five months (July–November) of FY2025-26, with the Federal Board of Revenue (FBR) falling Rs428 billion short of its target despite imposing new taxes, increasing rates, and stepping up enforcement.
According to official data, the FBR collected Rs4.715 trillion during Jul–Nov against a target of Rs5.14 trillion. To partially bridge the gap, the FBR has asked the State Bank of Pakistan (SBP) to keep commercial banks open on Saturday, anticipating an additional Rs15 billion in revenue.
Jul–Nov collection at Rs4.715 trillion vs Rs5.14 trillion target; income tax and sales tax drive major gaps as November alone misses Rs157 billion
Income tax collection reached Rs2.19 trillion—falling Rs177 billion short—while sales tax receipts totalled Rs1.67 trillion, missing the goal by Rs250 billion.
Federal excise duty collections stood at Rs326 billion, slightly under target, whereas customs duty rose to Rs520 billion, exceeding the target by Rs1 billion due to higher import volumes.
Monthly performance also lagged. Against the November target of Rs1.035 trillion, the FBR managed Rs878 billion, resulting in a Rs157 billion shortfall. Officials believe the gap may shrink to around Rs135 billion once pending advances are received over the weekend.
A recent news report noted that the FBR is currently operating without a permanent Member Inland Revenue Operations. The three-month additional charge given to Dr. Hamid Ateeq Sarwar expired in mid-November and has yet to be extended.
Businesses, burdened by continuous tax increases, are demanding relief. Sarfraz Ahmad, National Coordinator of the Special Investment Facilitation Council (SIFC), has acknowledged the challenges faced by the private sector and indicated that measures to reduce the tax burden are under consideration.
