The FY25–26 tax-to-GDP target is set at 11.2%.
The Pakistani government has set an 11.2% tax-to-GDP target for the next fiscal year 2025–2026 after consulting with the International Monetary Fund.
The Federal Board of Revenue (FBR) sources state that measuring the GDP (gross domestic product) size would determine the goal for the next fiscal year. In this regard, they added, an agreement has been reached with the IMF.
According to the sources, the tax-to-GDP target for the current fiscal year has been set at 10.6%. For the next fiscal year, it has been decided to raise this by about 0.5%. They added that the goal has been raised for the fiscal year 2025–2026 in light of this.
According to them, during the current fiscal year, the tax-to-GDP ratio has already risen to about 10.8%. On a yearly basis, this percentage will be progressively raised to 13%.
According to FBR insiders, the IMF and the FBR have been having virtual talks over budget targets. They decided that after the budget plans were finalized, the IMF Executive Board would approve the second tranche under the loan program.
