FBR achieves IMF-set tax-to-GDP target

January 02, 2025

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Islamabad: FBR’s tax-to-GDP ratio has surpassed the target agreed with the IMF by the end of December 2024.

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The target ratio was 10.6 percent, but 10.8 percent was achieved. The tax machinery collected Rs 5,624 billion during the first half of the current fiscal year (July to December), falling short of the desired tax collection target of Rs 6,009 billion, which was agreed upon with the IMF for the first half of the year, by Rs 385 billion. However, the FBR surpassed the tax-to-GDP ratio target by a small margin of 0.2 percent of GDP.

Under the target set by the IMF, it was estimated that the tax-to-GDP ratio would be 10.6% on an annual basis for the current fiscal year 2024-25, but during the first half of the year, this ratio increased to 10.8% by December 31, 2024.

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According to official data shared with The News on Wednesday, the tax-to-GDP ratio remained below the target for the July-September period and stood at 9.5 percent

The GDP growth rate in the first quarter was estimated at 0.92%. Now the FBR has assumed that the GDP growth rate during the second quarter (October-December) may remain around 2.57%.