Pakistan and the International Monetary Fund (IMF) are nearing a consensus on the revised macroeconomic and fiscal framework for the current fiscal year, under which the FBR’s tax collection will be revised downward to Rs13.45 trillion by the end of June 2026.
The IMF and Pakistani sides are holding virtual talks to strike a staff-level agreement under the $7 billion Extended Fund Facility (EFF). The FBR will fail in achieving the tax-to-GDP ratio of 11% envisaged under the target agreed with the IMF for 2025-26. The FBR has faced a revenue shortfall of Rs428 billion in achieving the revised target in the first eight months of the current fiscal year.
Now it is projected that the FBR’s tax collection in terms of tax-to-GDP ratio will go up to 10.6% by the end of June 2026 against 10.3%achieved by June 2025.
The IMF and Ministry of Finance have worked out that 1% of GDP hovers around Rs1,269 billion, so the overall FBR’s collection is projected to go close to Rs13.45 trillion till the end of June 2026 if it materialises at 10.6% of GDP.
