Prime Minister Shehbaz Sharif has declared the modernization of Pakistan’s tax system a top priority, aiming to enhance revenue collection while alleviating the burden on ordinary citizens. During a high-level meeting on Federal Board of Revenue (FBR) reforms in Islamabad, the PM acknowledged the positive impact of digitization in achieving tax targets but stressed the need for further upgrades to meet contemporary demands. He directed authorities to develop a comprehensive restructuring plan for the FBR’s digital wing with strict deadlines.
Stakeholder Consultation & Business Facilitation Key
The Prime Minister emphasized that all reforms must involve consultations with stakeholders, particularly traders, businessmen, and taxpayers, to ensure smooth implementation. He also called for stricter measures to curb the informal economy, which deprives the national exchequer of critical revenue. The meeting was informed that enforcement actions and policy changes have already led to a historic 1.5% increase in the tax-to-GDP ratio—a significant milestone for Pakistan’s economy.
Surge in Tax Filers & Retail Sector Revenue
Officials reported a remarkable jump in tax return filings, with the number of filers rising from 4.5 million to 7.2 million. Additionally, the retail sector contributed an extra Rs. 455 billion in income tax by June 2024 compared to the previous year. The FBR’s faceless customs system was also highlighted as a major breakthrough, expected to slash clearance times from 52 hours to just 12 within the next three months—boosting trade efficiency and revenue.
Digital Overhaul to Strengthen Transparency
PM Shehbaz Sharif reiterated that the reform process must focus on transparency, efficiency, and ease of doing business. With Pakistan striving for economic stability, these FBR reforms are seen as a crucial step toward formalizing the economy, expanding the tax net, and ensuring sustainable growth. The government remains committed to creating a fairer, more effective tax system that benefits both the public and the national economy.