Pakistan likely to face up to Rs200bn tax shortfall in March 2026

Federal Board of Revenue is likely to face a shortfall of Rs150–200 billion in tax revenue for March in Pakistan, ARY News reported on Tuesday, citing sources.

The FBR is facing difficulties in meeting its March target of Rs1,367 billion, with a potential shortfall of up to Rs200 billion.

Sources indicate that regional tensions and the prevailing war-like situation may result in a revenue loss of around Rs150 billion.

More than Rs60 billion in refunds were issued to exporters in March 2026, which also added pressure on revenue collection. According to documents, total tax collection from July to February stood at Rs8,121 billion.

Sources further warned of a cumulative shortfall exceeding Rs600 billion for the period from July to March. An increase in petroleum prices during March and a slowdown in economic activity have also negatively impacted revenue collection.

Additionally, higher payments in export refunds have contributed to the strain on revenues.

Sources within the FBR stated that the International Monetary Fund has not yet approved a request to revise the tax target downward.