The Federal Board of Revenue (FBR) is facing a major shortfall in tax collections for August, missing its target by Rs113 billion. The FBR collected Rs785 billion over the month, falling short of the Rs898 billion goal.
The FBR remains hopeful that revenue figures for the last day of August might help close the gap, although final numbers won’t be available until Monday.
Read more: FBR Agrees to Adjust Tax Scheme After Traders’ Demands
In contrast, the FBR surpassed its revenue target in July, collecting Rs659.2 billion against a target of Rs656 billion, bringing the total for July and August to Rs1,445 billion.
The government’s annual tax collection goal is set at a record Rs12,970 billion. To address any significant shortfall in revenue during the first quarter, the government has reportedly promised the International Monetary Fund (IMF) that it will introduce a mini-budget.
The Ministry of Finance recently reported a notable improvement in Pakistan’s economic conditions, with inflation dropping to a 32-month low of 11.1% in July 2024, down from 28.3% the previous year.
The report also highlighted a 47% increase in remittances, reaching $3 billion in July, and a 12.9% rise in exports, totaling $2.4 billion. Meanwhile, imports rose by 16.3% to $4.8 billion.
Tax revenue for July increased by 22.7% to Rs660 billion, and non-tax revenue surged 78.3% to Rs3,050 billion annually, reflecting positive economic trends.
