In a major milestone for Pakistan’s economy, the number of income tax return filers has surged to over 7.2 million by June 30, 2025, marking a 60% increase from the previous year’s 4.5 million. This historic rise has been credited to the Federal Board of Revenue’s (FBR) sweeping reforms and successful implementation of digitisation initiatives.
The significant progress was highlighted during a high-level meeting chaired by Prime Minister Shehbaz Sharif, where the Prime Minister’s Office (PMO) released a statement outlining the key achievements of the ongoing FBR reform agenda.
According to the report, enforcement measures and structural changes within the FBR have led to a 1.5% increase in the tax-to-GDP ratio, a record improvement from 2024 to 2025.
A pivotal component of these reforms includes the faceless customs clearance system, which is expected to reduce clearance times from 52 hours to just 12 hours within the next three months. This will drastically improve trade efficiency and transparency.
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In the retail sector, tax collection witnessed a remarkable Rs455 billion increase, driven by the integration of Point-of-Sale (POS) systems, tighter alignment between retailers and the FBR, and rigorous enforcement practices.
A new digital appeal system was also introduced, enabling dispute resolutions through video conferencing within the faceless framework—ensuring faster, more transparent outcomes for taxpayers.
Additionally, the weighted average tariff on imports has dropped by 2.16%, reducing the cost of raw materials for industries and bolstering domestic manufacturing.
To further solidify progress, international recommendations are being incorporated into FBR’s digitisation and reform plans. PM Shehbaz called for third-party validation of these reforms and emphasized the importance of business and taxpayer facilitation in all future policy implementations.
The Prime Minister instructed officials to intensify the crackdown on tax evasion and under-invoicing, while also demanding a comprehensive restructuring roadmap for the FBR’s Digital Wing with defined timelines.
He concluded by stressing the need for inclusive consultation with all stakeholders, ensuring that the reform process is sustainable, future-ready, and fully aligned with economic growth objectives.
