FBR Misses FY2024-25 Revenue Target by Rs1,070 Billion

FBR Misses FY2024-25 Revenue Target by Rs1,070 Billion Despite New Tax Measures

ISLAMABAD:
The Federal Board of Revenue (FBR) ended the fiscal year 2024-25 with a massive shortfall of Rs1,070 billion, collecting Rs11,730 billion in tax revenues — well below the revised target of Rs12,900 billion, 24NewsHD reported on Tuesday.

Revised Target Missed Despite IMF Commitments

The revenue target was revised upward following Pakistan’s agreement with the International Monetary Fund (IMF). However, the FBR fell short by Rs1,027 billion during the July–May period alone, collecting Rs10,213 billion against a target of Rs11,240 billion.

Progressive Shortfall Throughout the Fiscal Year

• July–March 2025 shortfall: Rs703 billion
• July–April 2025 shortfall: Rs821 billion
• July–May 2025 shortfall: Rs1,027 billion
• Total FY shortfall (July–June): Rs1,070 billion

Key Reasons for Revenue Deficit

Experts attributed the shortfall to:

• Decline in import-related taxes
• Subdued manufacturing activity
• Record-low inflation, which recently hit 0.3%

Despite the government introducing Rs1.761 trillion worth of new revenue measures in the FY2024-25 budget, actual collection failed to meet targets.

Refunds and Rebates

FBR issued Rs493 billion in refunds to taxpayers — an increase from Rs480 billion last year. In June 2025 alone, refunds totaled Rs33 billion, up from Rs27 billion in the same month last year.

Tax Collection Breakdown (FY2024–25):

While the Federal Excise Duty (FED) collection exceeded expectations, shortfalls in other major categories significantly pulled down the overall performance.

As Pakistan prepares for the next fiscal cycle, analysts warn that sustained reforms, broadening of the tax base, and curbing exemptions are critical to meet future targets and reduce reliance on external financing.