The Federal Board of Revenue (FBR) reported a shortfall in tax collection for November 2024, missing its target by a significant margin. The revenue authority managed to collect approximately PKR 785 billion against the projected PKR 850 billion, sparking concerns over the fiscal deficit and the government’s ability to meet IMF stipulations.
Key contributors to this shortfall included sluggish industrial activity, lower-than-expected sales tax revenues, and delayed implementation of reforms aimed at broadening the tax base. Persistent inflation and currency depreciation have also impacted consumer spending, reducing indirect tax inflows.
Economists warn that the gap in revenue collection could pressure the government to introduce new tax measures or cut development spending. Meanwhile, FBR officials are urging enhanced compliance and targeted enforcement to recover the deficit in the coming months. With international financial obligations mounting, achieving fiscal discipline remains critical for Pakistan’s economic stability.
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