Islamabad, July 2, 2025 — Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to accelerate the expansion of its Point of Sale (POS) system across Pakistan’s retail sector. This move comes on the heels of a record 42% increase in tax revenues and a rise in the country’s tax-to-GDP ratio to 11.3%, the highest level in over a decade.
Speaking at a high-level meeting on tax reforms, the Prime Minister praised the FBR and the Ministry of Finance for their efforts in revenue mobilization, reporting an additional Rs865 billion ($3.03 billion) collected in the last fiscal year. He emphasized the importance of continuing reforms and improving taxpayer engagement.
“The FBR must widen the scope of its POS system across all retail outlets,” Sharif stated. “Digitizing production processes across industries, especially those with poor compliance, is essential for expanding the tax base.”
The POS system links retail cash registers directly to the FBR’s central system, enabling real-time monitoring of sales and automated calculation of sales tax. This digitization aims to reduce tax evasion and increase transparency in a largely undocumented retail sector.
In line with ongoing International Monetary Fund (IMF)-backed reforms, Pakistan has prioritized tax system digitization and the broadening of its taxpayer base to decrease reliance on external borrowing.
Sharif also underscored the need for improved taxpayer relations, instructing the FBR to maintain respectful communication with the public.
“The public must be treated with respect and dignity,” he said. “There will be zero tolerance for negligence in achieving our economic goals. We owe it to Pakistan’s future.”
Additionally, the Prime Minister called for the expansion of the Track and Trace Digital Production System, which monitors goods from manufacturing to delivery. Officials reported that the system is already active in the sugar, tobacco, and fertilizer sectors, and will soon be rolled out in the cement industry and others.
“All institutions must perform with full commitment to meet the targets for the new fiscal year,” the Prime Minister warned. “I am personally overseeing the progress on all revenue-related matters.”
