Pakistan Government Urges Imf To Reduce Tax Collection Target

As of March 1, 2026, the Pakistani government is preparing to request the International Monetary Fund (IMF) to further reduce its tax collection target for the fiscal year 2025-26 by PKR 250 to PKR 300 billion, following a staggering shortfall of PKR 429 billion in tax revenue during the first eight months of the fiscal year. The Federal Board of Revenue (FBR) reported collections of PKR 8.12 trillion against a target of PKR 8.55 trillion, despite an overall collection growth of 11% compared to the same period last year. February's collections alone fell short by PKR 85 billion against a monthly target of PKR 1.03 trillion, raising concerns about the sustainability of public spending and development programs. The IMF has already reduced the FBR’s annual tax target by PKR 150 billion in its latest review, indicating ongoing challenges in meeting fiscal targets amid slowing economic activity and policy constraints.