In a move to tackle Pakistan’s growing revenue deficit, Prime Minister Shehbaz Sharif has emphasized the urgent resolution of pending tax cases in the Supreme Court and demanded improved enforcement measures to recover Rs386 billion in lost revenue. During multiple meetings this week, the Prime Minister addressed the Federal Board of Revenue (FBR), focusing on how to counter the mounting revenue gap and ensuring no additional burden is placed on taxpayers.
Government insiders have reported that PM Shehbaz Sharif is concerned about the possibility of the FBR missing its Rs957 billion revenue target for January. In response, he directed that the FBR ramp up efforts to recover at least Rs400 billion out of the projected Rs7.2 trillion tax gap for the fiscal year.
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Despite the government’s assurance of no mini-budget, the FBR faces significant challenges in closing the revenue gap. The Prime Minister also urged the FBR to intensify its pursuit of top tax evaders, though efforts to collect from high-potential taxpayers have so far fallen short. The FBR has managed to retrieve only Rs378 million from 38,000 top potential income taxpayers.
PM Shehbaz also urged the Attorney General of Pakistan to expedite the resolution of pending court cases, which could lead to the recovery of Rs100 billion if decided in the government’s favor. While some controversial tax laws are still under legal scrutiny, the FBR’s performance in these cases has been criticized for lack of commitment.
