The Federal Board of Revenue (FBR) fell short of its revenue collection target by nearly Rs386 billion during the first half of the current fiscal year.
Provisional data released on Tuesday shows that the FBR collected Rs5.623 trillion between July and December, missing the Rs6.009 trillion target. Despite the shortfall, this represents a 26% increase compared to Rs4.466 trillion collected in the same period last year.
The revenue gap is primarily attributed to reduced tax receipts from imports due to slower trade activity, weak manufacturing growth, and an unexpected drop in inflation, which has recently fallen to single digits.
In December alone, the FBR collected Rs1.326 trillion against a target of Rs1.373 trillion, leaving a shortfall of Rs47 billion.
The government’s ambitious revenue target of Rs12.913 trillion for FY25—a 40% increase over FY24—appears increasingly unachievable. The refusal to reduce expenditures and the steep revenue goal have further strained efforts to meet the target.
Refund payments by the FBR reached Rs273 billion in the first half of FY25, a 16.66% increase from Rs234 billion in the same period last year. However, December refunds dropped significantly to Rs70 billion, compared to Rs38 billion in December last year—a sharp decline of 84%.
