The Federal Board of Revenue (FBR) has outlined a bold plan to address Pakistan’s significant revenue shortfall, ahead of an upcoming visit by an International Monetary Fund (IMF) delegation. This development comes at a time when Pakistan is struggling to meet critical financial commitments to secure International Monetary Fund support and stabilize its fragile economy.
The FBR aims to speed up container clearance operations at ports, auction off smuggled goods, and strengthen enforcement capabilities. It also plans to increase tax collection from low-tax sectors and expedite legal cases pending in courts to achieve its revenue targets.
In January, the RBI faces a challenging tax target of Rs 960 billion. Taking into account the current deficit of Rs 385 billion, the collection requirement has swelled to Rs 1,340 billion. Officials expressed confidence in implementing the necessary measures to ensure compliance with IMF standards.
The IMF’s upcoming review will assess progress on these initiatives, as well as other fiscal reforms, against the backdrop of the continuing economic challenges facing Pakistan.
In a separate report, the International Monetary Fund revised Pakistan’s 2025 GDP growth forecast to 3%, down from a forecast of 3.2% just three months ago. This revision, which forms part of the International Monetary Fund’s report “Global Economic Outlook Update: Global Growth – Divergent and Uncertain,” reflects the continuing economic obstacles.
Despite this reduction, Pakistan’s GDP growth is expected to remain at 4% in 2026. The IMF’s revisions are in line with recent forecasts by the Asian Development Bank (ADB), which also estimated Pakistan’s growth at 3% for the 2024-2025 fiscal year. , up from 2.8%.
Both institutions acknowledge the challenges facing Pakistan, but maintain a cautiously optimistic view of the medium-term recovery.
Pakistan’s economy has been under severe pressure, with dwindling foreign reserves, currency depreciation, and inflationary pressures worsening the financial landscape. Revenue generation remains a cornerstone of the country’s commitments under the IMF loan program, and any shortfall could jeopardize the financial assistance necessary to avert a deeper economic crisis.
The Fed’s efforts to achieve the ambitious targets are critical to strengthening fiscal credibility, especially as Pakistan navigates a complex recovery path amid global economic uncertainty.