ISLAMABAD – The Federal Board of Revenue (FBR) has unveiled a comprehensive roadmap under its transformation plan to enhance Pakistan’s tax-to-GDP ratio. Officials said the ratio is targeted to rise from the current 10.24% to 18% over the medium term.
As part of FBR’s transformation, the contribution of federal taxes will increase to 14%, provincial revenues by 3%, and the petroleum levy by 1%. Officials stressed that significant tax gaps exist, which the authority intends to bridge through digitisation, reforms, and better compliance measures.
The meeting, chaired by FBR Chairman Rashid Mahmood, was attended by representatives from the Overseas Investors Chamber of Commerce and Industry (OICCI), Pakistan Business Council (PBC), and other major business groups. Member Inland Revenue Operations, Dr Hamid Ateeq Sarwar, shared a detailed presentation on the reform process, which was approved by the prime minister in October 2024.
Key elements of FBR’s transformation focus on people, technology, and processes. To strengthen audit capacity, nearly 1,600 auditors are being hired. The newly recruited officers will receive advanced training at top universities to match the standards of leading corporate organizations. A performance-based incentive structure and evaluation system are also being introduced.
The plan highlights technology-driven solutions, including the Faceless Customs Appraisement system, which has already boosted revenue per GD by 17.3%. Efficiency at ports has improved with reduced dwell times and lower demurrages. Enforcement measures have also yielded eight times higher revenue in 2024-25 compared to the previous year.
Chairman Mahmood emphasized taxpayer facilitation as a top priority. A new facilitation division has been set up at Karachi LTO, where senior officers will directly address taxpayers’ concerns. He also proposed forming a joint committee with PBC, OICCI, and FBR to resolve issues related to valuation rulings.
Overall, FBR’s transformation reflects a strong push toward modernisation, improved compliance, and a fairer tax system to strengthen Pakistan’s financial stability.
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