FBR misses tax target by Rs428 billion due to poor management: IMF

As the tax collection deficit reaches a staggering Rs 428 billion in just five months, the International Monetary Fund (IMF) has raised serious concerns about governance lapses at the data-management arm of Federal Board of Revenue (FBR), Pakistan Revenue Automation Limited (PRAL). 

In its latest “Governance and Corruption Diagnostic Assessment,” the IMF notes that PRAL is hiring staff and outsourcing core functions, all without a legally required conflict-of-interest policy or code of conduct. 

The IMF described the situation as particularly problematic given that PRAL is offering competitive salaries to new recruits while relying on third parties for essential data work. 

The report adds that PRAL lacks a systematic mechanism for managing data-security risks, does not maintain a proper risk register, and reviews transaction logs only after incidents have occurred, rather than proactively monitoring activity. 

Officials also flagged weak oversight: board members reportedly interfere directly in management, and there is no permanent chief executive officer heading PRAL. 

Meanwhile, FBR’s tax collection figures paint a dire picture. Against a target of Rs 5.14 trillion for July–November, the board collected just Rs 4.715 trillion, falling short by Rs 428 billion. 

Income tax receipts lagged the target by Rs 177 billion, while sales tax collections undershot by Rs 250 billion. 

Excise and customs revenue numbers were slightly better, though overall the November collection of Rs 878 billion missed the monthly goal by Rs 157 billion. 

The IMF cautioned that without stronger oversight and governance reforms at PRAL and broader structural fixes at FBR, the tax shortfall is unlikely to improve, undermining revenue generation and economic recovery plans.