Revenue collection falls PKR 90 Bn short of target for FY18

Despite a revision of the revenue collection target for FY18, the FBR saw a shortfall of PKR 90Bn. Provisional revenue collection reached PKR 3,844.5 Bn, which is lower than the target set at PKR 3,935 Bn. The FBR had initially targeted a total collection of PKR 4,103 Bn for the fiscal year. The revenue collection ostensibly also includes PKR 100 Bn tax directly attributed to the amnesty scheme. As a result of this massive short fall in revenue, the budget deficit for FY18 is likely to cross 7% though the figure is yet to be finalised. The budget deficit was 6.5%, excluding the circular debt settlement amount, when the last govt. took over in 2013. Caretaker Finance Minister Dr Shamshad Akhtar has also categorically pointed out to the FBR that the money raised from the amnesty scheme should not be counted as a feather in the cap of the FBR, as it was due to the amnesty scheme’s incentive. The caretaker finance minister has reportedly also strictly prohibited the FBR’s top officials from sharing the details of the revenue figures with the media. Therefore, despite a lapse of six days, the FBR has not officially released the details of revenue figures.