Islamabad: The number of income tax return filers in Pakistan crossed 7.2 million by June 30, 2025, marking a substantial 60% increase from 4.5 million recorded the previous year. The development is being credited to ongoing reforms and digitisation efforts by the Federal Board of Revenue (FBR), according to a statement issued by the Prime Minister’s Office (PMO).
The progress was shared during a review meeting on FBR reforms chaired by Prime Minister Shehbaz Sharif on Wednesday. Officials informed the premier that enforcement actions, along with technology-driven initiatives, have led to a 1.5% rise in the country’s tax-to-GDP ratio compared to 2024 — a significant improvement in revenue performance.
The meeting was told that the introduction of a faceless customs clearance system will reduce cargo clearance time from 52 hours to 12 hours within the next three months. Additionally, a specialised appeal system has been launched to facilitate case resolution through video links, ensuring greater transparency and efficiency.
In the retail sector, income tax collection grew by PKR 455 billion by the end of FY2024-25. This increase was linked to the expansion of the Point-of-Sale (POS) integration, enforcement measures, and alignment of retailers’ systems with FBR infrastructure.
The implementation of these reforms has also resulted in a 2.16% decrease in the weighted average tariff on imports, helping to lower raw material costs and support the manufacturing sector.
Prime Minister Shehbaz Sharif appreciated the efforts of FBR officials and staff involved in the reform process and called for third-party validation of the implemented reforms. He instructed that a clear roadmap be drawn up for restructuring FBR’s Digital Wing, with defined objectives and timelines.
He also ordered the introduction of additional enforcement measures to tackle tax evasion, under-invoicing, and the informal economy. The prime minister stressed the importance of consulting all relevant stakeholders and ensuring that business facilitation remains central to the ongoing reform process.
Further proposals for tax reform and digitisation of other economic sectors, including the incorporation of recommendations from international experts, were also presented during the meeting.
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