Pakistan’s tax shortfall continued to grow in the first five months (July-November) of the current fiscal year 2025-26, with the Federal Board of Revenue (FBR) falling Rs428 billion behind its July–November target despite new taxes, higher rates and additional enforcement steps.
Official data shows the FBR collected Rs4.715 trillion in five months against the target of Rs5.14 trillion. In an attempt to narrow the gap before month-end, the FBR has asked the State Bank of Pakistan to keep commercial banks open on Saturday, expecting around Rs15 billion in additional inflows.
Income tax collection stood at Rs2.19 trillion, missing the target by Rs177 billion, while sales tax receipts reached Rs1.67 trillion, falling short by Rs250 billion.
Federal excise duty amounted to Rs326 billion, slightly below target, whereas customs duty collection reached Rs520 billion—Rs1 billion above target—helped by higher imports.
The monthly performance also remained weak. Against a November target of Rs1.035 trillion, the FBR collected Rs878 billion, marking a Rs157 billion shortfall. As per tax officials, the gap could reduce to Rs135 billion if certain advances materialise over the weekend.
According to a news report, the FBR is also functioning without a permanent member for Inland Revenue Operations. The three-month additional charge assigned to Dr Hamid Ateeq Sarwar expired in mid-November and has not been renewed.
Businesses, already strained by repeated tax hikes, are calling for relief. The national coordinator of the Special Investment Facilitation Council, Sarfraz Ahmad, has acknowledged the pressure on the private sector and outlined plans to reduce the tax burden.
