As Pakistan navigates the second half of fiscal year 2025–26, the Federal Board of Revenue (FBR) has intensified its efforts to close the gap between assigned tax targets and actual collections. A high-level meeting chaired by FBR Chairman Rashid Mahmood Langrial brought together senior officials from Inland Revenue and Customs to chart a practical roadmap for the remaining months of the fiscal year.
The discussion focused primarily on overcoming the revenue shortfall recorded during the first six months (July–December) of FY2025–26. Senior leadership, including Member Inland Revenue (Operations) and Member Customs (Operations), participated in the meeting, with several officials joining via video link.
Focus on Recoveries and Enforcement
During the session, the FBR Chairman acknowledged the ongoing recovery drive initiated by field formations, particularly efforts aimed at collecting legally admissible revenues that had remained stuck due to pending procedures. Officials emphasized that recoveries from court cases, combined with stricter enforcement and administrative measures, would play a crucial role in improving collections during January–June.
Heads of field formations also shared their assessments of potential revenue streams for the third quarter of the fiscal year, highlighting areas where enforcement and compliance could be further strengthened.
Revised Targets and Fiscal Pressures
The meeting was informed that the FBR’s annual tax collection target for FY2025–26 has been revised downward. The target now stands at Rs13,979 billion, reduced from the earlier figure of Rs14,307 billion — a cut of Rs328 billion. Despite this adjustment, the pressure to perform remains high.
According to updated figures, the FBR collected Rs6,169 billion during the first half of the fiscal year against a target of Rs6,490 billion, resulting in a cumulative shortfall of Rs321 billion. December 2025 alone saw collections of Rs1,425 billion, slightly missing the monthly target by Rs21 billion.
Exploring New Revenue Measures
To safeguard fiscal stability, the meeting also reviewed a range of possible additional revenue measures. These included a proposed increase of five percentage points in excise duties on fertilizers and pesticides, the introduction of excise duty on high-value sugary products, and expanding the sales tax base by shifting selected items to the standard rate.
While these proposals are still under consideration, they reflect the government’s intent to broaden the tax net and generate sustainable revenue without over-reliance on traditional sources.
Appreciation for Operational Leadership
The participants also commended the performance of newly appointed Member Inland Revenue (Operations) Zubair Bilal. His initiatives were credited with helping narrow the revenue gap during the period under review, earning appreciation from the top leadership.
Looking Ahead
With half of the fiscal year still ahead, the FBR appears committed to adopting a mix of recovery-focused strategies, enforcement reforms, and policy adjustments to stay on track. The coming months will be critical in determining whether these measures translate into stronger revenue performance and improved fiscal outcomes for the country.