Despite imposing record-high taxes on the public, the government failed to meet its annual revenue target for the fiscal year 2024-25 — falling short by a staggering Rs 511 billion. The Federal Board of Revenue (FBR) collected Rs 9.3 trillion against the revised target of Rs 9.8 trillion, missing the mark even after squeezing every possible rupee from the economy.
Sources within the finance ministry admit that this shortfall underscores serious inefficiencies within the tax machinery. It also raises questions about the government’s over-reliance on indirect taxation and its repeated failure to broaden the tax base.
Ironically, this massive gap came despite a historic level of tax collection — the highest ever in Pakistan’s history. Yet, it wasn’t enough to keep the country financially afloat. The shortfall puts additional pressure on an already strained fiscal framework, especially as Pakistan enters another round of negotiations with the International Monetary Fund (IMF).
Experts warn that continued dependence on inflation-driven revenue and ad-hoc tax measures, without structural reforms, will keep the economy trapped in a cycle of high taxation and low productivity.
The government now faces tough choices: deepen reforms, cut spending, or prepare for more borrowing — all while citizens continue to feel the pinch of rising prices and dwindling public services.
