ISLAMABAD – September 2, 2025: The Federal Board of Revenue (FBR) reported a significant 16 percent increase in tax collection for August 2025, gathering Rs 886 billion compared to Rs 765 billion in July. On a year-on-year basis, tax revenue also improved by 11 percent as the government continues to push for stronger compliance and revenue mobilization.
Despite the impressive rise, the collection fell short of the monthly target of Rs 951 billion, missing the mark by Rs 64 billion. According to official data, the FBR collected a total of Rs 1,651 billion in the first two months of the current fiscal year, against the assigned target of Rs 1,698 billion—leaving a shortfall of Rs 47 billion.
Strong July Performance Surpasses Target
Earlier in July 2025, the FBR exceeded expectations by collecting Rs 755 billion, surpassing its monthly target of Rs 748 billion. This achievement was seen as a strong indicator of improved revenue performance at the start of the fiscal year.
A detailed breakdown of July’s collections showed:
- Income Tax: Rs 324 billion
- Sales Tax: Rs 353 billion
- Federal Excise Duty: Rs 46 billion
- Customs Duty: Rs 113 billion
Annual Target Set at Rs 14,131 Billion
For the ongoing fiscal year 2025-26, the government has set an ambitious annual revenue target of Rs 14,131 billion. Achieving consistent monthly growth is considered vital, especially under the International Monetary Fund (IMF) program, where meeting revenue benchmarks is one of the key conditions for continued financial support.
Economic Outlook Linked with Revenue Performance
Experts note that steady growth in FBR’s tax collection is crucial for Pakistan’s economic stability. Strong revenue generation not only strengthens the government’s fiscal position but also enhances the country’s ability to meet international obligations, attract investment, and reduce reliance on borrowing.
The Ministry of Finance, in a report submitted to the Senate, highlighted that FBR collected Rs 1,017.8 billion in the fiscal year 2024-25. This was described as a milestone achievement, reflecting broad-based growth across major revenue streams.
With August 2025 showing double-digit growth and July’s collections exceeding targets, the government is optimistic about sustaining momentum. However, bridging the monthly shortfall remains a pressing challenge for fiscal policymakers.
