The Federal Board of Revenue (FBR) faced its fourth consecutive month of declining tax collection in November, with revenues reaching only Rs878 billion against the monthly target of Rs1,034 billion, officials confirmed on Saturday.

FBR officials said the November shortfall has already reached Rs156 billion, though they expect some improvement as additional revenue is collected on the month’s final working day. Even so, the authority remains on track to significantly miss its target.

The upcoming tax collection target for December has been set at Rs1,406 billion, reflecting the government’s push to meet revised annual goals agreed with the IMF.

Deepening fiscal gap

Sources inside the revenue authority said the FBR is facing a major shortfall in tax collection during the first five months of the current fiscal year. From July to November, the FBR collected Rs4,715 billion against the required Rs5,083 billion, leaving a substantial gap in meeting cumulative targets.

Documents show that:

July collection reached Rs757 billion against a target of Rs748 billion, the only month exceeding expectations.
August revenue was Rs901 billion, missing the Rs950 billion target.
September collection posted Rs1,228 billion versus a Rs1,325 billion target.
October saw revenues of Rs951 billion, compared to a goal of Rs1,026 billion.
November has now added another shortfall, with Rs878 billion collected against Rs1,034 billion.

Officials say the persistent gaps reflect economic pressures, import contraction, inflation-driven slowdowns, and earlier flood-related challenges.

Revised annual target aligned with IMF requirements

Pakistan’s revised tax collection target for the current fiscal year stands at Rs13.9 trillion, scaled down from the original Rs14,131 billion set in the 2025–26 federal budget.

The adjustment was made in consultation with the International Monetary Fund, primarily due to flood-related losses that impacted economic activity and revenue potential.

With five months already behind target, officials acknowledge that the FBR faces steep challenges in meeting its annual commitment without aggressive enforcement and improved economic indicators.