IMF report says govt revenue projected to hit Rs15,815bn in FY2025-26

A report released by the International Monetary Fund (IMF) projects that Pakistan’s total tax revenue will hit Rs17,035 billion in the upcoming fiscal year 2025-26, with the federal government's share of revenue expected to reach Rs15,815 billion, reported 24NewsHD on Sunday.

According to the IMF assessment, the Federal Board of Revenue (FBR) will be tasked with achieving a revenue collection target of Rs14,307 billion, out of which Rs6,470 billion is projected to be collected through direct taxes.

The government is also expected to generate Rs4,943 billion through sales tax and Rs1,143 billion under federal excise duty (FED).

In addition, the country will earn Rs1,741 billion from customs duties, and non-tax revenue is forecasted to bring in Rs2,582 billion during the same period.

On the expenditure front, the defence budget will be allocated Rs2,414 billion, while Rs1,367 billion is earmarked for subsidies. The government also plans to spend Rs1,619 billion on various grants and Rs1,065 billion on the development budget.

A major chunk of the government's spending, however, will go toward interest payments, which are projected to amount to a substantial Rs Rs8,665 billion in FY 2025-26.

The figures reflect the country’s continued reliance on both tax and non-tax revenue streams to meet rising expenditure needs, especially in the face of mounting debt servicing obligations.

Reporter: Waqas Azeem