The Federal Board of Revenue (FBR) has extended the deadline for filing income tax returns for the 2025 tax year by 16 days, giving taxpayers until October 31 to submit their details.
According to an official notification issued Wednesday, the decision follows multiple requests from trade bodies, taxpayers, and tax bar associations, who sought additional time due to administrative and financial constraints. The previous extension had moved the due date to October 15.
Despite efforts to boost collections, the FBR reported a Rs1.2 trillion shortfall against its original Rs12.97 trillion target for FY25 — even after implementing Rs1.3 trillion in new taxes. The final collection stood at Rs11.74 trillion, after two downward revisions.
Officials attributed the shortfall partly to unrealised recoveries worth Rs250 billion tied up in ongoing court cases. The issue reportedly drew scrutiny from the International Monetary Fund (IMF) during recent technical-level talks, where Islamabad was asked to explain the underperformance.
Economists say that while the extension offers convenience to taxpayers, it also highlights the revenue stress facing Pakistan’s fiscal system. The FBR’s struggle to meet its targets underscores the government’s broader challenge — balancing public relief measures with the stringent fiscal discipline required under IMF oversight.
