ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to intensify enforcement efforts to boost revenue collection during the current fiscal year and ensure the achievement of the annual target.

The directive was issued during a meeting chaired by the premier to review progress on FBR reforms. He received a detailed briefing on the status of key tax reform initiatives and their implementation timelines.

According to an official statement from the Prime Minister’s Secretariat, the meeting was informed that FBR’s enforcement measures and reform initiatives have resulted in a historic 1.5pc increase in the tax-to-GDP ratio.

The number of tax return filers has surged from 4.5 million to 7.2m. In the retail sector, income tax collection grew by Rs455 billion as of June 30 compared to the preceding year, the meeting was told.

Reforms lift tax-to-GDP ratio by 1.5pc, returns filing to 7.2m

The FBR’s Faceless Customs Clearance System was also highlighted as a major reform, significantly contributing to revenue growth. The system is expected to reduce average clearance time from 52 hours to just 12 hours within the next three months.

The prime minister said enhancing the tax system to boost national revenue while reducing the burden on the common citizen remains one of the government’s top priorities. He welcomed the progress made through recent FBR reforms but stressed the need for timely action to develop a tax framework aligned with modern needs.

He also called for the formulation of a comprehensive plan to restructure the FBR’s digital wing, with clearly defined goals and deadlines.

The premier underscored the importance of stakeholder engagement in the reform process, urging that the concerns of the business community, traders, and taxpayers be addressed proactively.He further instructed that additional enforcement measures be adopted to curb the informal economy, the statement added.

Published in Dawn, July 24th, 2025