The Federal Board of Revenue is likely to face a revenue shortfall of Rs. 190 billion in May 2026, according to sources, after tax collection fell significantly below the monthly target.

Sources said the FBR had collected Rs. 960 billion against a target of Rs. 1.15 trillion by the latest count, leaving a substantial gap before the end of the month.

Officials expect around Rs. 5 billion in additional revenue to be collected on May 31, which could take the total collection for May to Rs. 965 billion. Despite that, the tax authority is still expected to miss its monthly target by a wide margin.

The underperformance in May is likely to add to the pressure on the FBR ahead of the federal budget, as the government works to finalize fiscal targets for the next financial year.

Sources added that the cumulative revenue shortfall for the first eleven months of the current fiscal year could exceed Rs. 860 billion by May 31, highlighting the growing challenge facing revenue authorities.