Pakistan has provided tax data to the International Monetary Fund (IMF), estimating a tax-to-GDP ratio of 10.6% for the current fiscal year.
According to official sources, the Federal Board of Revenue (FBR) has proposed setting its revenue target at the equivalent of 11% of GDP. The relevant data to determine this target has already been shared with the IMF.
Sources within the Ministry of Finance indicated that the FBR is expected to collect up to PKR 11,800 billion in taxes during the ongoing fiscal year.
Additionally, it is estimated that PKR 500 billion could be recovered from pending tax litigation cases in courts. However, if these recoveries do not materialize, the government may fall short of its revised tax target of PKR 12,334 billion.
Finance Ministry sources added that failure to recover the contested tax amounts would result in a shortfall against the revised target, potentially leading to a revenue gap of PKR 500 billion.
Previously, the FBR’s target before revision stood at PKR 12,970 billion.
