The International Monetary Fund has urged Pakistan to cover its revenue shortfall by ensuring full recovery of the super tax, following a recent court ruling that cleared legal hurdles to its collection, sources familiar with the matter said.

The development comes after the Federal Constitutional Court rejected petitions challenging the levy and upheld Section 4B of the Income Tax Ordinance, 2001. The court also declared parts of earlier High Court judgments related to Section 4C as having no legal effect, paving the way for accelerated recovery efforts.

Officials said the ruling has enabled the Federal Board of Revenue to step up collection at a time when it faces a significant revenue gap. According to official figures, the FBR recorded a shortfall of Rs335 billion after missing its tax collection target for the first half of the current fiscal year, covering July to December.

Sources said the IMF and the FBR held virtual discussions after the court decision, during which the IMF expressed satisfaction with the legal clarity and pressed Pakistan to meet its agreed tax targets. The IMF reportedly asked the authorities to complete recovery of all pending super tax dues within the current month.

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Based on official estimates, total super tax collections are expected to reach nearly Rs380 billion by June 2026. Of this amount, around Rs300 billion is anticipated to be recovered in the near term, with a further Rs80 billion projected by the end of the fiscal year.

Officials said that once the bulk of super tax recoveries is completed, the FBR’s revenue shortfall is expected to be largely eliminated by December. Sources added that the FBR’s legal wing has completed preparatory work to pursue the matter further in the Supreme Court, amid strong pressure from the IMF to resolve outstanding litigation.

Under the Finance Bill, the super tax is imposed on large companies at rates ranging from 1 percent to 10 percent, depending on profitability, and applies to entities earning above a specified threshold. Authorities have said the revenue gap will be addressed through improved tax collection rather than short-term measures such as a mini-budget.