Pakistan has committed to collecting over Rs. 17 trillion in federal revenues during FY2026-27 under its ongoing programme with the International Monetary Fund (IMF), supported by new taxation measures, higher petroleum levy targets, and additional provincial revenue commitments.

According to the IMF staff report on Pakistan’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews, the federal government’s total revenue target for the next fiscal year has been set at Rs. 17.145 trillion, reflecting an increase of more than 13.5 percent compared to the current fiscal year.

The report revealed that Pakistan agreed to several prior actions before securing IMF board approval for the latest loan disbursement. These measures included Rs. 136 billion in reduced provincial grants, Rs. 322 billion in recoveries linked to favorable super tax court rulings, and the continuation of full fuel price adjustments despite earlier concerns arising from regional geopolitical tensions.

The IMF expects the Federal Board of Revenue (FBR) to collect Rs. 15.264 trillion in FY2026-27, nearly Rs. 1.84 trillion higher than the current fiscal year’s projected collection.

According to the report, around 12 percent organic growth in revenues is expected through a combination of 8.4 percent average inflation and 3.5 percent economic growth. The remaining increase will come from tax reforms, stricter enforcement measures, audits, and expanded digital monitoring systems.

Pakistan has also committed to raising approximately Rs. 95 billion through tax audits, Rs. 50 billion from improved sales tax liability calculations, and another Rs. 50 billion through tighter monitoring of sectors such as sugar, cement, tobacco, and fertilizer.

The IMF further projected that Pakistan’s petroleum levy collections could reach nearly Rs. 1.55 trillion during the current fiscal year, exceeding the official target. For FY2026-27, the petroleum levy target has been increased to Rs. 1.73 trillion, almost 18 percent higher than the present year’s budgeted figure.

The report indicated that the government and the IMF are likely aligned on gradually increasing the average petroleum levy rate toward Rs. 100 per liter next year, as fuel consumption growth alone may not be sufficient to achieve the ambitious collection target.

Pakistan has additionally pledged to enhance social protection spending by increasing payments under the Benazir Income Support Programme (BISP) from Rs. 14,500 to Rs. 18,000 per family. Authorities informed the IMF that nearly 40 percent of the country’s population remains economically vulnerable.

Meanwhile, provincial governments have committed to generating around Rs. 430 billion in additional revenues through stronger sales tax collection and agricultural income tax reforms. Provincial cash surpluses are projected to rise to nearly Rs. 2 trillion in the next fiscal year.

On the energy front, Pakistan has assured the IMF that it will continue timely adjustments in gas and electricity tariffs to maintain full cost recovery. The government also plans to shift targeted electricity subsidies for low-income consumers to the BISP platform instead of the existing electricity billing mechanism.

The IMF report further noted that Pakistan has committed to reducing government intervention in wheat and sugar markets, phasing out incentives for special economic and technology zones by 2035, strengthening anti-corruption institutions, and introducing a national sugar policy by June 2026.