Pakistan: PM Backs FBR Reforms Boosting Tax Revenue

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Prime Minister Shehbaz Sharif has expressed satisfaction with the Federal Board of Revenue’s (FBR) performance, crediting recent reforms for improving Pakistan’s tax-to-GDP ratio. Speaking during a high-level review meeting held in Islamabad on Tuesday, the Prime Minister reaffirmed the government’s support for implementing structural reforms aimed at enhancing the country’s fiscal stability.

The Prime Minister stressed the need for consistent enforcement of customs clearance reforms across all entry points, including seaports and land borders. These measures are part of the FBR’s broader agenda to modernize revenue collection and address inefficiencies within the system.

Sharif also instructed relevant officials to eliminate bureaucratic delays that could hinder the execution of these reforms. He emphasized that partial or inconsistent implementation would undermine the intended outcomes of the reform agenda.

According to government sources, the reforms are already beginning to show results in terms of improved revenue collection. A rise in the tax-to-GDP ratio is considered a key indicator of fiscal health, particularly as Pakistan continues to manage budget deficits and external debt pressures.

Experts note that expanding the tax base and improving compliance are central to Pakistan’s long-term financial resilience. The FBR’s efforts focus on increasing transparency, reducing discretion in tax assessments, and creating a more efficient tax administration. However, challenges remain, including resistance from within the revenue bureaucracy and the need for greater technical capacity.

Economic observers suggest that the coming fiscal year will be a crucial test for the FBR’s reform strategy. If successful, these measures could reduce reliance on foreign loans and enable the government to finance development projects more sustainably.

The Prime Minister’s remarks underscore the political commitment required to sustain reform momentum and build confidence in Pakistan’s economic management. Continued oversight and institutional coordination will be essential to ensure these gains are not short-lived.