Finmin's adviser says tax collection on target, provinces bound to boost revenue

Dawn reported that revenue collection is on track for the current fiscal year, according to Khurram Schehzad, adviser to the finance minister. He said the Federal Board of Revenue met its target for July and August, the first two months of FY27. The remarks came just days before an IMF mission scheduled for Islamabad on Sept 23 will look at economic performance.

In a Friday interview with the Pakistan & Counting channel on YouTube, Schehzad said provinces must now raise their own taxes rather than depending on allocations from the federal divisible pool. A formal fiscal pact linked to the IMF programme makes that obligation binding, he added. To show earlier commitments had been followed through, he pointed to agricultural income tax legislation approved last year by the four provincial assemblies, a structural benchmark under the programme.

He also hoped the government would hit the collection goal set for a recently unveiled retail tax scheme. Revenue performance is set to feature prominently when the visiting IMF delegation holds talks with the government.