FBR faces PKR 386 bn shortfall in revenue collection for H1 FY25
FBR faces PKR 386 bn shortfall in revenue collection for H1 FY25
Islamabad: The Federal Board of Revenue (FBR) has reported a revenue shortfall of Rs386 billion for the first half of the fiscal year 2024-25, falling short of its target of Rs6.009 trillion. Between July and December, the FBR collected Rs5.623 trillion, reflecting a 26% year-on-year increase but still missing the target due to factors such as reduced imports, low inflation, and sluggish manufacturing growth.
The shortfall was particularly notable in December, with collections amounting to Rs1.326 trillion against a target of Rs1.373 trillion, despite a 35% increase compared to December last year. While income tax collections exceeded the target by Rs256 billion, sales tax collections fell short by Rs380 billion, and customs revenue also lagged behind expectations.
Despite these challenges, the FBR achieved its highest tax-to-GDP ratio in four years, reaching 10.8% for the second quarter of FY25, surpassing the IMF’s target of 10.6%. The government remains optimistic about achieving its ambitious Rs12.913 trillion revenue target for FY25, banking on GDP growth, increased manufacturing activity, and higher import levels.
The FBR also issued Rs273 billion in refunds, a 16.66% increase compared to the previous year. With the IMF set to review Pakistan’s economic performance in February or March, the revenue shortfall may be addressed through adjustments in autonomous growth and expenditure cuts.