Pakistan has committed to achieving a massive Rs. 17.145 trillion federal revenue target in FY2026-27 under its agreement with the International Monetary Fund, supported by new taxation measures, higher petroleum levies, and additional provincial revenue efforts.
According to the IMF staff report on Pakistan’s Extended Fund Facility and Resilience and Sustainability Facility reviews, federal revenues are projected to increase by more than 13.5% next fiscal year, compared to current-year estimates.
The report stated that Pakistan agreed to several prior actions before securing IMF board approval for the latest disbursement tranche. These measures included reduced provincial grants, additional recoveries linked to favorable super tax court decisions, and full pass-through of fuel price adjustments despite regional geopolitical tensions.
The Federal Board of Revenue is expected to collect around Rs. 15.264 trillion during FY2027, nearly Rs. 1.836 trillion higher than current-year projections.
According to IMF estimates, organic revenue growth will mainly come from projected inflation and economic growth, while the remaining increase is expected through tax reforms, stricter enforcement, expanded audits, and enhanced digital monitoring systems.
Pakistan has also committed to generating billions of rupees through tax audits, improved sales tax calculations, and tighter monitoring of key industries including sugar, cement, tobacco, and fertilizer.
The IMF further projected that Pakistan’s petroleum levy collection could exceed targets this year and reach nearly Rs. 1.55 trillion, while the levy target for FY2027 has been set at Rs. 1.73 trillion.
The report suggested that authorities may gradually increase the average petroleum levy rate toward Rs. 100 per litre to meet revenue goals, as fuel consumption growth alone may not be sufficient to support higher collections.
Meanwhile, the government has pledged to increase payments under the Benazir Income Support Programme to Rs. 18,000 per family, up from the current Rs. 14,500 level, amid concerns over economic vulnerability among low-income households.
Provincial governments have separately committed to mobilizing approximately Rs. 430 billion through stronger sales tax enforcement and agricultural income tax reforms, while provincial cash surpluses are projected to approach Rs. 2 trillion next year.
On the energy front, Pakistan assured the IMF that timely gas and electricity tariff adjustments would continue to ensure full cost recovery. Authorities also plan to shift targeted electricity subsidies for low-income consumers to the BISP framework instead of the current billing-based mechanism.
The IMF report additionally noted Pakistan’s commitments to reduce intervention in wheat and sugar markets, phase out incentives for special economic zones by 2035, strengthen anti-corruption institutions, and introduce a national sugar policy by June 2026.
