PM Shehbaz lauds FBR reforms as tax filers jump to 7.2mn

The number of income tax return filers in Pakistan has crossed 7.2 million by June 30, 2025, up from 4.5 million in the previous year — a significant increase of 60% attributed to the Federal Board of Revenue’s (FBR) ongoing reforms and digitisation efforts.

The development came to light during a review meeting on ongoing FBR reforms held under the chairmanship of Prime Minister Shehbaz Sharif on Wednesday, read a statement released by the Prime Minister’s Office (PMO).

During the meeting, it was shared that enforcement actions and other reforms by FBR have resulted in a historic 1.5% increase in the tax-to-GDP ratio in 2025 compared to 2024.

It was reported that due to the faceless customs clearance system, the clearance time will be reduced from 52 hours to 12 hours within the next three months.

PM calls for third-party validation of FBR reforms

In the retail sector, tax collection on income increased by Rs455 billion by June 30, 2025, compared to 2024. This rise was attributed to the implementation of Point-of-Sale (POS) integration, alignment of retailer systems with FBR, and enforcement efforts.

It was told that a specialised system has been introduced to allow for appeals within the faceless system, ensuring timely case resolutions through video links.

Due to these measures, the weighted average tariff on imports has decreased by 2.16%, reducing raw material costs for industries and supporting the manufacturing sector, read the statement.

It was learnt that international experts’ recommendations will also be incorporated into tax reforms and the digitisation of various economic sectors.

The meeting was also presented with additional proposals for FBR reforms.

PM Shehbaz appreciated the efforts of FBR officials and staff involved in the reform process and directed that actionable targets with timelines be finalised and presented next week.

The prime minister stated that while achieving targets is a positive sign, further effort is needed. He emphasised that FBR’s digitisation has supported goal achievement, and steps must now be taken to make it a sustainable, permanent system.

PM Shehbaz orders crackdown on tax evasion, under-invoicing

PM Shehbaz instructed that additional enforcement measures be introduced to curb the informal economy.

He also directed that a comprehensive roadmap be developed for the restructuring of FBR’s Digital Wing, with a timeline established for achieving set objectives.

The prime minister stressed that all stakeholders must be consulted and their input incorporated into the reform process. He also directed that the facilitation of businesses, traders, and taxpayers should be prioritised in implementing FBR reforms.