Islamabad: The Federal Board of Revenue (FBR) has reported a shortfall of Rs386 billion in its revenue collection for the first half of the fiscal year 2024-25, falling short of the target of Rs6.009 trillion. The FBR collected Rs5.623 trillion between July and December, marking a 26% increase compared to the same period last year but missing the target due to factors such as a decline in imports, low inflation, and sluggish manufacturing growth.
The shortfall was particularly evident in December, where FBR collected Rs1.326 trillion against a target of Rs1.373 trillion, representing a 35% increase compared to the previous December. While income tax collections exceeded the target by Rs256 billion, sales tax collections fell short by Rs380 billion, and customs collections were also below expectations.
Despite the challenges, FBR achieved its highest tax-to-GDP ratio in four years for the second quarter of FY25, at 10.8%, surpassing the IMF target of 10.6%. The government hopes to meet its ambitious Rs12.913 trillion revenue target for FY25 through GDP growth, manufacturing expansion, and an increase in imports.
The FBR has also paid Rs273 billion in refunds, marking a 16.66% increase from the previous year. The IMF is expected to review Pakistan’s economic performance in February or March, and the revenue shortfall is likely to be managed through adjustments in autonomous growth and expenditure reductions.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
