Islamabad: The Federal Board of Revenue (FBR) on Wednesday briefed leading business leaders on its transformation plan, which aims to raise Pakistan’s tax-to-GDP ratio from the current 10.24 percent to 18 percent over the medium term.
According to the plan, FBR’s share in the target will rise to 14 percent, provincial revenues by three percent, and the petroleum levy by one percent. Officials noted that a significant gap remains in major taxes, which the reforms seek to address through digitisation, structural changes, and improved enforcement.
The meeting, chaired by FBR Chairman Rashid Mahmood, was attended by representatives of the Overseas Investors Chamber of Commerce and Industry (OICCI), Pakistan Business Council (PBC), and other leading business groups. Member Inland Revenue Operations Dr Hamid Ateeq Sarwar gave a detailed presentation on the implementation of the plan, which was approved by the prime minister in October 2024.
The reform strategy focuses on three areas — people, technology, and processes. Around 1,600 auditors are being hired to strengthen audit capacity, with training planned at top universities to align with corporate standards. Officers will be appointed based on integrity and assessed through a reward and rating system linked to a performance-based incentive package.
Participants were also shown demonstrations of technology-driven initiatives. Officials said reforms had already helped raise the tax-to-GDP ratio from 8.8 percent in FY2023-24 to 10.24 percent in FY2024-25. Early results of the Faceless Customs Appraisement initiative, still in its pilot stage, have increased revenue per GD by 17.3 percent while improving efficiency at ports by cutting dwell time and demurrages. Enforcement efforts in FY2024-25 also generated eight times more revenue than in the previous year.
Chairman Mahmood stressed that taxpayer facilitation remains a priority. A new facilitation division has been set up at the Karachi Large Taxpayers’ Office, where senior officers will directly attend to taxpayers’ concerns. He also suggested forming a joint committee comprising representatives of the FBR, PBC, and OICCI to resolve issues related to valuation rulings and other matters.
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