The Federal Board of Revenue (FBR) briefed business leaders on its transformation plan. The goal is to increase Pakistan’s tax-to-GDP ratio from 10.24% to 18% over the medium term. The plan, approved by the prime minister in October 2024, focuses on digitisation, audits, and taxpayer support to drive economic growth.
The FBR aims to contribute 14% to the tax-to-GDP ratio, with 3% from provincial revenues and 1% from the petroleum levy. Member of Inland Revenue Operations, Dr. Hamid Ateeq Sarwar, presented the plan. He emphasised three pillars: people, technology, and processes. The FBR will hire 1,600 auditors, trained at top universities, to boost audit capacity. Officers will be selected for integrity and offered performance-based incentives.
The plan includes tech-driven solutions like the Faceless Customs Appraisement. This solution has increased revenue per Goods Declaration by 17.3% and cut port dwell times. Enforcement measures have generated eight times more revenue in 2024-25 than in the previous year. The FBR’s efforts raised the tax-to-GDP ratio from 8.8% in 2023-24 to 10.24% this year.
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Chaired by FBR Chairman Rashid Mahmood, the meeting included leaders from the Overseas Investors Chamber of Commerce and Industry (OICCI) and Pakistan Business Council (PBC). A new facilitation division at Karachi’s Large Taxpayers Office will address taxpayer concerns directly. Chairman Langrial proposed a joint committee with PBC, OICCI, and FBR to resolve valuation issues.
The FBR’s transformation plan aims to close tax gaps, boost revenue, and support Pakistan’s economy. By prioritising digitisation and taxpayer ease, it could enhance business confidence and global competitiveness. The reforms signal a shift toward transparent, efficient tax systems.
