PM Shehbaz Acknowledges Revenue Gap, Stresses Urgent Need for Action

During a cabinet meeting on Wednesday, the Prime Minister praised the performance of government officials but pointed out a significant “gap” between actual revenue collection and the targets set.

"While revenues are higher than last year, there is still a considerable gap from the targets we agreed upon with the IMF," the Prime Minister remarked, urging for enhanced enforcement measures. "We must close this gap and meet the targets within the next six months," he emphasized.

These comments followed the announcement that the Federal Board of Revenue (FBR) collected Rs1,326 billion in December 2024, falling short of the Rs1,373 billion target.

In the first half of the fiscal year (July-December 2024-25), FBR's total collections reached Rs5,623 billion, compared to the target of Rs6,009 billion, creating a shortfall of Rs386 billion.

Pakistan is currently under a $7 billion, 37-month loan agreement with the IMF, signed in July 2024. One of the IMF’s key demands is to increase the country’s tax-to-GDP ratio.

On a more positive note, PM Shehbaz highlighted the country’s economic progress, stating that the economy had achieved stability and was now on the verge of a “takeoff.”

"Remittances during the first five months of the fiscal year reached around $15 billion, and if this growth continues, they are expected to hit $35 billion by year-end, the highest in Pakistan's history," he said.

The Prime Minister also shared that efforts to curb sugar smuggling to Afghanistan had been successful, and this has allowed for increased sugar exports. Additionally, he mentioned a significant reduction in oil smuggling and progress in initiatives aimed at improving governance, including right-sizing and e-governance.

PM Shehbaz commended the successful launch of the 'Uraan Pakistan' programme, asserting that it would be crucial in stabilizing the economy. He reiterated that Pakistan’s economic growth must be driven by export-led growth, as there are no other viable alternatives