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Pakistan’s FBR Misses Four-Month Target by Rs274 Billion as IMF Contingency Taxes Loom

Officials have linked a potential January tax package to IMF review conditions.

Overview

  • FBR collected Rs3.84 trillion in July–October against a Rs4.109 trillion goal, leaving a Rs270–Rs274 billion gap after October’s Rs950–Rs955 billion intake fell short of a Rs1.026 trillion target.
  • Authorities told the IMF they will trigger up to Rs200 billion in extra revenues from January 1, 2026 only if first‑half performance underwhelms on agreed revenue and spending benchmarks.
  • Draft measures include raising the non‑filer cash‑withdrawal withholding to 1.5%, increasing taxes on landline and mobile calls, lifting GST on solar panels to 18%, and imposing a 16% FED on confectionery and biscuits.
  • Government officials say the commitment aided staff‑level progress on the bailout review, and Pakistan declined an IMF suggestion to raise the general GST rate to 19%.
  • Despite compliance gains with a record 5.9 million returns filed, including 3.6 million with payments, the gap persists as refunds reported for the period reached about Rs205 billion and the prime minister ordered a review of high tax rates.