FBR misses IMF target by Pkr 975bn
Pakistan has missed the International Monetary Fund (IMF) condition on federal tax collection by a margin of Rs975 billion, as the Federal Board of Revenue (FBR) only managed to collect Rs13 trillion during the just-ended fiscal year.
The collection was in line with the FBR’s downward assessment of Rs13 trillion made in June after missing targets for the first 11 months. The banking system had cleared Rs12.97 trillion, with the remaining about Rs33 billion expected to be cleared by midnight, said tax authorities at the close of the fiscal year. It was the second consecutive year the tax authorities failed to achieve the goal by close to Rs1 trillion or more. In dollar terms, the FBR collected $4 billion less than the assigned target of Rs14.13 trillion set by the IMF and the government of Prime Minister Shehbaz Sharif in June last year. Subsequently, the IMF lowered the target to Rs13.979 trillion and maintained it at this level during the May review talks.
However, the FBR cannot afford to miss the new fiscal year’s Rs15.264 trillion target, whose achievement is now critical for meeting three national goals: security of territorial borders, water security and food and fuel security. Only if the FBR collects Rs15.264 trillion can the additional spending requirements for achieving these goals be met.
Committee briefed on alternative sourcing amid turmoil
The Senate Standing Committee on Petroleum has reviewed the country’s fuel supply situation and energy security during a meeting at Pakistan State Oil (PSO) headquarters, with members expressing satisfaction over measures taken to ensure uninterrupted petroleum supplies amid regional challenges.
PSO officials briefed the committee that disruptions caused by the closure of the Strait of Hormuz had affected regional supply chains, resulting in shortages of refined petroleum products, limited vessel availability and increased freight and procurement costs.
PSO informed the committee that it had addressed the challenges through alternative sourcing from regional and international markets, optimisation of supply operations, demand-based product redistribution and round-the-clock functioning at key installationsThe committee was also briefed on plans to strengthen strategic fuel reserves and long-term supply arrangements to enhance the country’s energy security. The committee also reviewed the Petroleum Division’s Public Sector Development Programme (PSDP) proposals for 2026-27. It was informed that no new projects had been approved during the current cycle, with allocations restricted to ongoing geological mapping activities.
Managing Director PARCO briefed the committee on the LPG tanker explosion at an illegal decanting facility in Multan on January 27, 2025, which caused casualties and damage to property.
Sindh motor insurance surges 1,374pc
Third-party motor insurance coverage in Sindh has surged 1,374percent within three months of the provincial government making it mandatory for all registered vehicles, according to the Securities and Exchange Commission of Pakistan (SECP).
Following the enactment of the Provincial Motor Vehicles (Amendment) Act, 2026, in March, active third-party policies in Sindh increased from 11,200 to 165,064 by the end of June 2026.
Under the new system, third-party motor insurance is now compulsory for all registered vehicles. Authorities now require this coverage for vehicle registration, ownership transfer, and annual token tax payments. SECP provided full support to implement the system smoothly.
Third-party motor insurance offers essential, low-cost protection. It covers bodily injury, permanent disability, or death to third parties in road accidents. The new law also establishes a no-fault compensation system. Victims or their families receive prompt financial aid without determining fault. Compensation of up to Rs700,000 will be paid in case of death, and up to Rs500,000 in case of permanent disability. This system eliminates lengthy court proceedings and provides immediate support.
According to the National Transport Research Centre and the National Police Bureau, approximately 9,000 to 10,000 traffic accidents occur annually in Pakistan, resulting in thousands of injuries and imposing significant financial burdens on affected families.
Sanghar well begins production
Oil and Gas Development Company (OGDC) has successfully completed Chak 63-05, a new development well in the Chak 63 Development & Production Lease located in Sanghar district of Sindh, marking another milestone in the company’s efforts to enhance Pakistan’s indigenous oil and gas production.
During production testing through a 32/64-inch choke, the Chak 63-05 produced 600 barrels of condensate per day (bpd) and 10.5 million standard cubic feet of gas per day (mmscfd) at a wellhead flowing pressure of 2,580 pounds per square inch (psi).
Imported fuels spark power security fears
Pakistan’s increasing dependence on imported fossil fuels is exposing the economy to mounting fiscal and energy security risks amid declining domestic gas reserves and rising industrial demand.
A detailed report and SWOT analysis released by the Institute of Cost and Management Accountants of Pakistan (ICMA) highlighted that Pakistan’s energy mix continues to rely heavily on oil, gas and coal, alongside contributions from nuclear and renewable energy sources including hydropower, wind and solar. However, shrinking indigenous reserves and the country’s dependence on imported oil and liquefied natural gas (LNG) are creating significant challenges for sustainable economic growth, industrial productivity and urban expansion.
The report noted that successive governments have attempted to address these concerns through policy initiatives such as Vision 2025 and the Medium-Term Development Framework, aimed at improving energy efficiency, modernising infrastructure, encouraging private sector participation and promoting long-term sustainability in the energy sector.