Prime Minister Shehbaz Sharif approved a digital ecosystem for the Federal Board of Revenue (FBR) to enhance tax reforms, as reported by Radio Pakistan. The initiative aims to centralise data for real-time monitoring and broaden the tax base.
During a meeting in Islamabad, PM Sharif directed the engagement of global experts to design a system integrating data from raw material imports to consumer purchases. He stated: “The entire value chain must be digitally monitored.” The centralised system will enable strategic economic decisions and real-time oversight, reducing tax evasion.
Sharif emphasised: “Broadening the tax base and eliminating the informal economy will reduce the burden on citizens.” He ordered immediate implementation of FBR reforms, focusing on digitization to address “70 years of mismanagement.” Honest taxpayers will receive maximum facilitation, while tax evaders face strict legal action, with no concessions.
The FBR collected Rs 1,017.8 billion in FY 2024-25, adding 280,197 new filers, according to a Senate report. The digital ecosystem aligns with Pakistan’s economic strides, including a $2.1 billion FY25 current account surplus and S&P’s credit rating upgrade. Social media on X praised the move, with posts like: “Digitising FBR is a game-changer!”
The system aims to enhance transparency, supporting IMF-backed fiscal policies. By integrating data, it will curb informal economic activities, boosting revenue. The involvement of global experts ensures a robust design, with implementation timelines expected to be announced soon.
PM Sharif’s approval of the FBR digital ecosystem marks a pivotal tax reform. By leveraging technology, Pakistan aims to strengthen its fiscal framework and economic stability.
