PTBP Web Desk
Pakistan has agreed to an ambitious federal revenue target of Rs. 17.145 trillion for fiscal year 2026-27 under commitments made to the International Monetary Fund (IMF), according to the IMF staff report released after the review of Pakistan’s Extended Fund Facility and Resilience and Sustainability Facility programmes.
The report stated that the federal government plans to increase revenues by more than 13.5 percent next fiscal year through a combination of new taxation measures, stronger enforcement, digital monitoring, and higher petroleum levy collections.
Under the agreement, Pakistan will introduce approximately Rs. 430 billion in additional budgetary measures to help meet fiscal targets. The IMF also expects the Federal Board of Revenue (FBR) to collect around Rs. 15.264 trillion in taxes during FY2027, which would represent an increase of nearly Rs. 1.836 trillion compared to the current fiscal year.
According to the report, around 12 percent organic revenue growth is expected through inflation and economic growth, while the remaining increase will come from structural reforms, audits, compliance measures, and tax enforcement initiatives.
Pakistan has also committed to generating Rs. 95 billion through tax audits and another Rs. 50 billion by improving sales tax liability calculations. Additional revenue will be raised through stricter monitoring of sectors including sugar, tobacco, cement, and fertilizer.
The IMF report further revealed that petroleum levy collections are expected to remain a major revenue source. The Fund projected petroleum levy revenue could reach nearly Rs. 1.55 trillion this year, while the target for FY2027 has been increased to Rs. 1.73 trillion.
Officials believe the higher target suggests an understanding between Pakistan and the IMF to gradually increase petroleum levy rates, potentially toward an average of Rs. 100 per litre, as fuel consumption growth alone may not be sufficient to achieve the collection target.
The report also highlighted Pakistan’s commitment to continue timely electricity and gas tariff adjustments to ensure full cost recovery in the energy sector. In addition, targeted subsidies for low-income electricity consumers are expected to shift toward the Benazir Income Support Programme (BISP) instead of being provided through electricity bills.
The government has also assured the IMF that BISP payments will increase from Rs. 14,500 to Rs. 18,000 per eligible family, acknowledging that nearly 40 percent of the population remains economically vulnerable.
Provincial governments have separately pledged to generate almost Rs. 430 billion in additional revenues through stronger sales tax enforcement and agricultural income tax reforms.
The IMF report further noted Pakistan’s commitment to reduce intervention in wheat and sugar markets, phase out incentives for special economic zones by 2035, and strengthen anti-corruption institutions as part of broader structural reforms.
