Pakistan’s Federal Board of Revenue collected Rs13.004 trillion in fiscal year 2025-26, exceeding the revised annual target by Rs21 billion and surpassing the IMF’s fallback benchmark of Rs12.957 trillion, according to provisional figures reported by Dawn (Dawn). The result represents an 11 percent increase over the Rs11.745 trillion collected in FY25 and closes a fiscal year that began with a Rs14.131 trillion target before two successive downward revisions under pressure from a widening revenue shortfall.
The decisive factor was income tax, which came in at Rs6.579 trillion — Rs51 billion above its sub-target — driven by higher-than-anticipated June collection. The petroleum development levy performed well above target at Rs1.564 trillion against a Rs1.468 trillion goal, benefiting from historically elevated levy rates of Rs120 per litre on petrol. Sales tax nearly matched its target at Rs4.254 trillion (Rs1 billion short), while customs duty fell Rs18 billion below target and federal excise duty fell Rs11 billion short.
A narrower miss than it looks
The full-year story is one of managed expectations rather than outperformance. The original parliamentary target of Rs14.131 trillion was cut first to Rs13.97 trillion and then to Rs12.983 trillion in consultations with the IMF after monthly shortfalls made the higher figure unachievable. Exceeding the revised target is a legal and programme compliance milestone, but the government will enter FY27 under an IMF-proposed target of Rs15.6 trillion — which Islamabad has not yet agreed to — against a FY26 base that was itself adjusted downward.
Tax-to-GDP reached approximately 10.6 percent for FY26, compared with 10.3 percent in FY25 — a marginal improvement but still well below the 11.3 percent ratio the IMF wants Pakistan to achieve in the new fiscal year. The FBR’s ability to sustain June’s income tax momentum through FY27 — without one-off payments and in a year when the IMF wants both a higher headline target and structural reforms to broaden the tax base — will be the test that matters.
