Islamabad – October 1, 2025
The Federal Board of Revenue (FBR) has reported a significant shortfall in tax collection for the first quarter of the current fiscal year, with a gap of Rs 195 billion between the target and actual revenue.
According to sources, the FBR was tasked with collecting Rs 3,020 billion in revenue from July to September 2025. However, actual collections amounted to Rs 2,885 billion, leaving a shortfall of Rs 135 billion in total revenue for the period. When factoring in quarterly adjustments and sectoral expectations, the effective shortfall reaches Rs 195 billion.
In September alone, the FBR collected Rs 1,230 billion, showing steady performance in the final month of the quarter. Sources indicated that over 4 million income tax returns had been filed by September 30, reflecting a positive response from taxpayers despite the revenue gap.
The shortfall has been attributed to multiple factors, including lower-than-expected sales tax collections, customs duties, and delayed payments from large-scale industries. Analysts note that while the first quarter underperformance is concerning, there is potential for improvement as the year progresses and the FBR implements corrective measures.
Officials said that the final audited figures may show a slight increase in total collections, depending on late filings and adjustments. They stressed that the shortfall, although significant, is within manageable limits and can be addressed through policy adjustments and increased monitoring.
The FBR is expected to strengthen enforcement measures, enhance compliance mechanisms, and expand taxpayer outreach to mitigate future shortfalls. Authorities also emphasized the importance of digitization, modernized collection systems, and stricter monitoring of large taxpayers as part of a broader strategy to meet annual revenue targets.
Economic analysts warn that persistent shortfalls, if not addressed, could impact government spending on development projects and public services, making timely corrective actions critical for maintaining fiscal stability.
This quarterly revenue update highlights the challenges facing Pakistan’s tax administration and underscores the importance of sustained efforts to broaden the tax base, improve compliance, and ensure adequate funding for national priorities.
