ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday said a modern tax administration should focus not only on revenue collection but also on taxpayer facilitation, transparency and building public trust.

Speaking to senior officials at the Federal Board of Revenue (FBR) headquarters, the minister appreciated their efforts in achieving the revised revenue collection target for FY26, saying tax reforms must be accompanied by improved taxpayer services and greater institutional credibility.

The FBR collected Rs13.010 trillion in FY26 against the revised target of Rs12.983tr, recording an 11pc increase over the Rs11.745tr generated in FY25.

Aurangzeb stressed the need to make tax compliance easier through technology-driven solutions, greater automation, improved taxpayer services, and reduced opportunities for discretion and corruption.

He said the government’s newly approved operating model for FBR would accelerate institutional transformation through reforms centred on people, processes, and technology, including the expanded use of artificial intelligence and digital systems.

He expressed gratitude to parliamentarians for supporting the legislative framework needed to implement these reforms and reaffirmed the government’s full commitment to transforming FBR into one of Pakistan’s leading public institutions.

The minister said the achievement should be viewed in the context of Pakistan’s broader reform journey over the past two and a half years, during which the country’s revenue collection had nearly doubled.

He noted that alongside improved external sector indicators, Pakistan had recorded its lowest fiscal deficit and highest-ever primary surplus, achievements made possible by strong revenue performance and prudent fiscal management.

The minister said the FBR processed and disbursed Rs599bn in tax refunds during the year, including an unprecedented Rs13.5bn released on the last day of 2025-26, describing it as a significant milestone reflecting the government’s commitment to facilitating businesses and exporters.

FBR Chairman Rashid Mahmood Langrial joined the meeting virtually and appreciated the close coordination between the Finance Division and FBR throughout the budget process, particularly during consultations with the IMF, provincial governments, coalition partners, parliamentary committees, and other stakeholders.

Langrial briefed the meeting on the ongoing FBR modernisation initiatives, including major technology upgrades, enhanced customs systems, artificial intelligence-based solutions, and extensive capacity-building programmes.

He reaffirmed the board’s commitment to implementing the government’s reform agenda and expressed confidence that these initiatives would further improve taxpayer services, strengthen compliance, and modernise Pakistan’s tax administration.

Published in Dawn, July 2nd, 2026