ISLAMABAD, Jul 23 (Alliance News): Prime Minister Muhammad Shehbaz Sharif on Wednesday chaired a high-level review meeting on the Federal Board of Revenue (FBR) reforms, praising the progress achieved so far and stressing the need for sustained, time-bound efforts to modernize the tax system.
Calling the recent developments in tax administration “encouraging,” the prime minister emphasized that the reforms must result in a sustainable, digitized, and user-friendly tax system. “We have achieved important milestones, but more dedicated efforts are required,” he said, according to a statement from the Prime Minister’s Office.
He instructed the FBR to accelerate its digital transformation, restructure its digital wing with a clear roadmap, and take stronger enforcement steps to tackle the informal economy. He also underlined the importance of consultation with all stakeholders, including businesses, traders, and taxpayers.
The prime minister reiterated that reforms should help grow national revenue while easing the tax burden on ordinary citizens.
The FBR briefed the meeting that, due to reforms and enhanced enforcement, the tax-to-GDP ratio rose by a historic 1.5% in FY2025 compared to FY2024. Income tax return filers increased sharply from 4.5 million in 2024 to over 7.2 million by June 30, 2025.
Officials also reported notable success under the faceless customs clearance system, which boosted revenue and is expected to cut average clearance times from 52 hours to just 12 within three months.
Retail sector tax collection increased by Rs. 455 billion over the previous year, thanks to expanded use of point-of-sale systems and tougher enforcement.
Further, the reforms reduced the weighted average tariff on imports by 2.16%, lowering raw material costs and providing relief to local industries. A new video link system has also been introduced for case hearings to ensure timely and transparent resolutions under the faceless regime.
The prime minister welcomed additional reform proposals and directed that a clear, time-bound plan with actionable goals be submitted within a week. He also commended the FBR team for their contributions.
Federal Ministers Attaullah Tarar, Ahad Cheema, Azam Nazeer Tarar, the FBR Chairman, and senior officials attended the meeting.
