FBR misses its end-December 2025 tax collection target, while data gaps leave two other indicative benchmarks unverified, officials say
By our correspondent
ISLAMABAD: Pakistan has achieved 14 of the 17 quantitative performance and indicative benchmarks set under the International Monetary Fund (IMF) program for end-December 2025, The News reported on Friday.
The Federal Board of Revenue’s (FBR) tax collection target for end-December 2025 could not be met, while for two other indicative targets the relevant data was not available. Income tax revenue collected from retailers could not be provided to the IMF, as the FBR had agreed with the Fund on collecting a substantial amount from the retail sector during the current fiscal year.
The IMF staff has briefed the Washington-based lender’s Executive Board and shared a detailed report on the basis of which the Board is expected to consider approval of the fourth tranche worth $1.2 billion in May 2026. Total accumulated spending on health and education stood at Rs1,360 billion by the end of December 2025, in line with the IMF’s envisaged target.
Top official sources confirmed that Pakistan and the IMF had reached a staff-level agreement under the $7 billion Extended Fund Facility (EFF), with Fund staff completing an appraisal of seven quantitative performance criteria for end-December 2025. It found that net international reserves of the State Bank of Pakistan (SBP), adjusted from negative $5.6 billion to negative $6.99 billion, were successfully met.
The ceiling on the general government primary budget deficit stood at Rs4.1 trillion for end-December 2025 and was also met. Cash transfers under the Benazir Income Support Program (BISP) reached Rs326 billion, meeting the agreed target. The IMF had set a target of 500,000 new tax return filers, but the relevant data was not available for end-December 2025.
Total government guarantees stood at Rs4,542 billion, and this target was achieved. The ceiling on the State Bank of Pakistan’s net domestic assets stood at Rs15,016 billion and was met, while the ceiling on its net foreign currency swap and forward position stood at negative $1.86 billion, also in line with the agreed target. The provincial government’s primary balance was envisaged at Rs1,227 billion.
