ISLAMABAD: Advisor to the Finance Minister Khurram Schehzad has stated that the FBR collected Rs994 billion in May, achieving 97 percent of the monthly target.
In a statement, he said tax collections during the first eleven months of the fiscal year reached Rs11,257 billion. “Against the eleven-month target, the FBR achieved 99.8 percent of the objective, effectively reaching the target in practical terms. These figures do not support claims of a revenue collapse, fiscal crisis or a major tax shortfall. Equally important, the June 2026 revenue target has been determined according to the revised fiscal framework rather than the original estimates that continue to be cited by some quarters,” he added.
He maintained that the FBR collected Rs1,502 billion in June 2025, while the target for June 2026 has been set at Rs1,727 billion. “This requires an increase of approximately 15 percent, which remains consistent with achieving the revised annual target. Therefore, there appears to be no need for extraordinary measures. However, some media reports continue to refer to a tax shortfall of Rs864 billion based on the original target of Rs14,130 billion set at the beginning of fiscal year 2025-26, a comparison that may create a misleading impression,” he said.
He explained, “Tax targets are set before the start of each fiscal year based on a range of economic assumptions, including GDP growth, inflation, expected imports, growth in large-scale manufacturing, exchange rates, and policy rates. As economic conditions evolve, these assumptions are reassessed and fiscal projections are adjusted accordingly. Within this context, the original revenue target was revised downward to Rs13,000 billion in consultation with the IMF to reflect changing economic realities. These factors include inflation volatility, a stronger exchange rate (below Rs280 per dollar compared to the budget estimate of Rs296 per dollar), changes in growth projections, domestic challenges such as floods and international geopolitical developments, including the US-Iran conflict and the resulting increase in energy and commodity prices.
“Such revisions are a normal component of fiscal management and are intended to ensure that revenue and expenditure projections remain aligned with prevailing economic conditions. Consequently, the business community, investors, industries and taxpayers may be reassured that sensational claims regarding large revenue shortfalls do not accurately reflect the current fiscal position. There appears to be no basis for concerns regarding additional or unusual tax collection measures or enforcement actions based on the alleged shortfall.”
He added: “Similarly, speculation regarding extraordinary revenue measures or aggressive enforcement actions during the final month of the fiscal year appear difficult to justify under the revised framework. The narrative of a large revenue gap loses credibility when assessed against the revised fiscal framework and updated economic assumptions. Public commentary on fiscal matters should therefore rely on current official data and prevailing economic realities rather than selective references to outdated benchmarks that may create a distorted picture of fiscal pressures. Ignoring changing economic conditions, revised fiscal projections and the broader macroeconomic context can lead to conclusions that are inconsistent with both the available data and present ground realities.”
