ISLAMABAD: The Ministry of Finance presented the details of the Federal Board of Revenue’s (FBR) tax collection over the last five years during the National Assembly’s Question Hour on Friday.
According to the data, in the fiscal year 2019-20, the FBR had collected Rs3,997 billion against a target of Rs3,908 billion.
In 2020-21, the FBR had collected Rs4,745 billion, surpassing the target of Rs4,691 billion.
In 2021-22, tax collection was Rs6,148 billion against a target of Rs6,050 billion.
In 2022-23, the FBR had collected Rs7,164 billion, slightly short of the target of Rs7,200 billion.
Finally, in 2023-24, the FBR had collected Rs9,252 billion, falling just short of the target of Rs9,299 billion.
In response to a question by Ms Sehar Kamran, the Commerce Ministry also presented details of the country’s trade deficit over the last five years.
According to the data: In FY2020, exports were valued at $21.4 billion, while imports had stood at $44.6 billion, resulting in a trade deficit of -$23.6 billion.
In FY2021-22, exports had totalled $25.3 billion, and imports had reached $56.4 billion, with a trade deficit of -$31.08 billion.
In FY2022-23, exports were $31.8 billion, while imports had surged to $80.1 billion, resulting in a trade deficit of -$48.35 billion.
In FY 2023-24, exports had declined to $27.7 billion, while imports were $55.3 billion, with a trade deficit of -$27.41 billion.
In FY 2024-25, exports had increased to $30.67 billion, while imports were $56.78 billion, resulting in a trade deficit of -$24.11 billion.
The Commerce Ministry highlighted that in December 2024, Pakistan’s imports had exceeded $5 billion, reaching $5.2 billion, while the trade deficit was $2.35 billion. The surge in imports was attributed to ongoing economic growth, with several key sectors experiencing a revival in industrial activity.
Notably, imports of power generation and transmission equipment, including solar panels, transformers, and converters, increased by 60% in December FY25 compared to the previous year, reaching $319 million. Similarly, industrial machinery imports rose by 20%, while textile machinery imports surged by 40%. Imports of auto parts for heavy vehicles and trailers increased by 58%, and heavy equipment imports more than doubled, growing by 109 percent.
The rise in imports was attributed to increased industrial activity, improving business sentiment, and growing domestic demand fuelled by declining consumer inflation and interest rates.
The Finance Ministry also outlined its strategy for reducing the country’s debt burden. The ministry emphasised fiscal consolidation measures, including revenue mobilisation and expenditure rationalisation, to generate primary surpluses and reduce borrowing needs.
According to the ministry, Pakistan’s debt remains sustainable under the IMF’s debt sustainability assessment. Over the medium term, the government aims to reduce debt by extending the average time to maturity (ATM) of government debt securities. The ATM increased from 2.7 years in June 2024 to 3.3 years in December 2024, reducing gross financing needs (GFN).
Additionally, the ministry expects to save approximately Rs1 trillion in interest servicing this year due to effective debt management and a declining interest rate environment. The ministry also revealed plans to issue green sukuk in the domestic market and Panda Bonds in Chinese capital markets this year. These instruments are expected to provide comparatively cheaper funding options than conventional borrowing through Pakistan Investment Bonds (PIBs) and Eurodollar bonds.