Finance Minister hails FBR for hitting revised FY26 target

July 02, 2026 (MLN): Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb lauded the Federal Board of Revenue (FBR) for achieving its revised revenue collection target for fiscal year 2025-26 while addressing FBR officials at the FBR Headquarters on Wednesday.

The meeting was attended by FBR Chairman Rashid Mahmood Langrial, Members of the FBR Board, senior officers, and Chief Commissioners and Chief Collectors who joined virtually from across the country.

During his address, the finance minister described the separation of tax policy and tax collection functions through the establishment of the Tax Policy Unit as a major milestone in the government's reform agenda.

He said Pakistan was currently passing through the most critical phase of implementing reforms aimed at strengthening the country's tax system.

Muhammad Aurangzeb congratulated the FBR on meeting its revised FY2025-26 revenue collection target and praised the efforts of the entire organization for its dedication and hard work throughout the fiscal year.

He said the achievement should be viewed in the context of Pakistan's broader reform journey over the past two and a half years, during which the country's revenue collection had nearly doubled.

According to the finance minister, the improvement represented one of the most significant advances in Pakistan's fiscal history and had played a key role in strengthening the country's macroeconomic fundamentals.

He noted that stronger revenue collection, coupled with prudent fiscal management, had enabled Pakistan to record its lowest fiscal deficit and highest-ever primary surplus, while improvements had also been witnessed in the external sector.

The finance minister also commended the Inland Revenue and Customs formations, saying the FBR had delivered robust revenue growth despite providing substantial tariff relief to facilitate economic activity.

To note, the FBR collected Rs13.601tr in gross tax revenue during FY2025-26, surpassing its revised annual target of Rs12.983tr and achieving 100.2% of the goal.

After issuing Rs597.8bn in refunds, net tax collection stood at Rs13.004tr, exceeding the revised net target of Rs12.983tr.

Income tax remained the largest contributor with gross collections of Rs6.645tr, followed by sales tax at Rs4.731tr, customs duty at Rs1.385tr, and federal excise duty at Rs840bn.

On a net basis, income tax collection reached Rs6.579tr, achieving 101% of its target, while sales tax collection stood at Rs4.254tr, meeting 100% of its target. Federal excise duty and customs duty each achieved 99% of their respective targets.

Overall net tax collection grew 11% YoY, driven by a 14% increase in income tax, followed by 10% growth in federal excise duty, 9% in sales tax, and 4% in customs duty.

In June 2026 alone, the FBR collected Rs1.813tr in gross revenue against a monthly target of Rs1.753tr, achieving 101% of the target. After refunds of Rs42.2bn, net collection for the month stood at Rs1.770tr.

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