ISLAMABAD – The Federal Board of Revenue (FBR) has announced substantial progress under its wide-ranging transformation programme, approved by the Prime Minister in October 2024, aimed at modernising Pakistan’s top tax authority through reforms in people, technology and processes.
Member Inland Revenue Operations Dr. Hamid Ateeq Sarwar gave a detailed briefing to senior business leaders, explaining how the measures underway are reshaping the way the FBR functions and improving its capacity to collect taxes more efficiently and transparently.
One of the key pillars of the plan is strengthening human resources. The FBR is in the process of recruiting around 1,600 auditors to expand its audit coverage. Newly inducted officers will receive advanced training at leading universities to align professional standards with those of large corporate organisations. Appointments are being made on an integrity-first basis and supported by a new Reward and Rating System that offers attractive performance-linked incentives to high-performing officers.
On the technology front, the FBR has rolled out digital production monitoring in high-revenue sectors such as sugar, fertiliser, cement, beverages, tobacco, poultry and textiles. By integrating multiple data sources and digitising processes, the authority expects to link real economic activity with tax return filings, spot tax evasion more quickly and use AI-driven risk parameters to select audit cases objectively.
Dr. Sarwar emphasised that these interventions are designed to boost efficiency while improving transparency and accountability. Participants at the session were shown live demonstrations of technology-based solutions and praised the pace of reform.
The plan is already yielding tangible results. Pakistan’s tax-to-GDP ratio has risen from 8.8% in FY2023–24 to 10.24% in FY2024–25. The recently introduced Faceless Customs Appraisement initiative has increased revenue per Goods Declaration (GD) by 17.3%, while reforms in customs operations have reduced port dwell time and cut demurrage costs for importers. Enforcement drives have also gained momentum, with revenue from enforcement actions rising eightfold compared to last year.
As part of its taxpayer facilitation efforts, the FBR has set up a dedicated Facilitation Division at the Large Taxpayers Office (LTO) Karachi, where senior officers will personally handle taxpayers’ issues. Chairman FBR Rashid Mahmood proposed forming a joint committee of representatives from the Pakistan Business Council (PBC), the Overseas Investors Chamber of Commerce & Industry (OICCI) and the FBR to collaboratively resolve issues such as valuation rulings and other policy matters.
Business leaders welcomed the reforms, saying they would help broaden the tax base while reducing the compliance burden on honest taxpayers. Concluding the session, the Chairman thanked participants for their input and reaffirmed the FBR’s commitment to continuous stakeholder engagement. Representatives from both the PBC and OICCI applauded the initiative and called for regular dialogue between the business community and the tax authority.