The Federal Board of Revenue (FBR) has reportedly failed to meet its tax collection target for November 2024. Despite stringent taxation measures, the authority recorded a substantial shortfall, collecting only Rs 852 billion against a monthly target of Rs 1,003 billion, resulting in a deficit of Rs 151 billion.
This underperformance is part of a broader trend this fiscal year, with a cumulative shortfall of Rs 344 billion in the first five months. From July to November 2024, the FBR collected Rs 4,292 billion, falling short of the Rs 4,639 billion target. Notably, November’s collection was higher than the previous month, which saw Rs 736 billion, marking a year-on-year increase of Rs 115 billion.
Sources close to the matter have indicated that this persistent underachievement in tax collection might prompt the International Monetary Fund (IMF) to require Pakistan to introduce a mini-budget. Such a measure would likely address the revenue gap and ensure compliance with IMF financial support conditions.
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The shortfall poses significant challenges for Pakistan’s fiscal management, as consistent revenue shortfalls can affect the government’s ability to fund essential services and development projects. It also pressures the FBR to enhance its collection mechanisms and broaden the tax base to prevent future deficits.