ISLAMABAD, September 11, 2025 – The Federal Board of Revenue (FBR) has raised Pakistan’s tax-to-GDP ratio from 8.8% in 2023-24 to 10.24% in 2024-25, following the ongoing transformation plan approved by Prime Minister Shehbaz Sharif in October 2024. The transformation has also resulted in an eightfold increase in enforcement-driven revenue compared to last year.
These results were shared during a meeting with representatives of the Overseas Investors Chamber of Commerce and Industry (OICCI) and the Pakistan Business Council (PBC), chaired by FBR Chairman Rashid Mahmood. Dr. Hamid Ateeq Sarwar, Member Inland Revenue Operations, outlined the key focus areas of the reform: people, technology, and processes.
As part of the transformation, FBR is hiring approximately 1,600 new auditors, who will receive training at top universities to strengthen audit capacity. Additionally, integrity-based appointments are being supported through a Reward and Rating System with high-powered incentive packages to attract and retain talent.
In terms of technological advancements, FBR is implementing digital production monitoring in sectors such as sugar, cement, fertilizer, beverages, tobacco, poultry, and textiles. Integration of data sources and digitalized processes will link economic activity to tax returns, while AI-driven risk parameters will help guide taxpayer audits.
The meeting participants were also shown demos of the technology solutions, including faceless customs appraisement, which has already raised revenue per General Declaration (GD) by 17.3% and reduced dwell time and demurrages at ports.
Business leaders commended the progress made in technology-driven reforms, noting that these measures are making the FBR more transparent and accountable. Chairman Mahmood highlighted the importance of taxpayer facilitation, pointing to the new division at LTO Karachi, where senior officers will address taxpayer concerns directly.
To resolve valuation and related issues, Chairman Mahmood proposed forming a committee comprising representatives from PBC, OICCI, and FBR. Business representatives welcomed the pace of reforms and expressed hope that the expanded tax net would ease the burden on compliant taxpayers.
The session concluded with mutual appreciation and a commitment to continue stakeholder engagement.
Discover more from Brackly News
Subscribe to get the latest posts sent to your email.
