Preparations for Pakistan’s federal budget for the fiscal year 2025–26 are underway, with the government having shared detailed tax data with the International Monetary Fund (IMF), sources confirmed.
According to sources in the Ministry of Finance, the Federal Board of Revenue (FBR) has proposed setting the revenue target at Rs14,200 billion, which would equal 11% of the country’s GDP. The proposal will be finalised during upcoming negotiations with the IMF.
Officials said that the IMF and Pakistani authorities are already in online contact, and a visiting IMF delegation is scheduled to arrive in Pakistan from May 14 to 22. During the visit, discussions will be held to finalise tax policies and budgetary targets.
For the current fiscal year, the tax-to-GDP ratio is estimated at 10.6%, and the government aims to raise it to 11% in the next fiscal year. The FBR is expected to collect Rs11,800 billion in taxes this year, compared to the revised target of Rs12,970 billion.
This suggests a potential revenue shortfall of Rs1,170 billion against the original target, raising concerns about fiscal discipline and future financing.
