FBR ‘Faces’ Rs335 Billion Revenue Shortfall in First Half of FY2025-26
ISLAMABAD: The Federal Board of Revenue (FBR) is reportedly facing a revenue shortfall of Rs335 billion in the first half of Fiscal Year 2025-26. Officials attribute the deficit to lower tax collection and sluggish economic activity.
Moreover, the shortfall raises concerns over Pakistan’s fiscal stability and budget execution.
Reasons Behind the Shortfall
According to FBR sources, shortfalls stem from delayed tax payments, reduced import duties, and underperformance in income tax collection.
In addition, lower commodity prices and declining corporate tax contributions contributed to the deficit.
Government Response
Finance officials said strategies are being devised to bridge the revenue gap. Measures include improved tax compliance, expanding the tax base, and stricter enforcement.
Furthermore, authorities are considering temporary adjustments in tariffs and excise duties to meet targets.
Impact on the Economy
The shortfall may affect public spending on infrastructure, health, and social programs. Experts warn that continued revenue gaps could increase borrowing and pressure the Pakistani rupee.
Meanwhile, analysts stress the need for long-term tax reforms to strengthen revenue generation.
FBR’s Outlook
FBR remains optimistic about closing the gap in the second half of the fiscal year. Additionally, authorities aim to improve digital tax collection and monitor high-value sectors more efficiently.
Conclusion
The Rs335 billion revenue shortfall in H1 FY2025-26 highlights challenges facing Pakistan’s tax administration. Swift government action will be crucial to maintain fiscal stability.
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