IMF questions FBR tax targets as Pakistan begins virtual talks

Pakistan and the International Monetary Fund have started virtual technical discussions focusing on external financing arrangements and the Federal Board of Revenue’s ability to meet revised tax collection targets for the remainder of the fiscal year.

Officials from the FBR briefed the IMF that they expect to collect around Rs13,500 billion in taxes this year against the revised target of Rs13,979 billion. The IMF, however, questioned how the revenue authority plans to bridge what it sees as a widening gap between projections and the required outcome.

The report notes that earlier targets approved around the budget period were subsequently revised, and the IMF has signalled scepticism about further downward adjustments. The lender’s view, as outlined in the report, is that collections may remain closer to the Rs13,000–13,200 billion range, pressing Pakistan to explain how it would reach higher figures.

In this scenario, officials indicated that if revenues fall short, the government may need to restrain spending to remain aligned with deficit and primary balance goals by the end of June 2026.

The talks also referenced the importance of external financing, including the status of rollovers and other arrangements, as Pakistan continues discussions to close its funding gaps for the year.