Business Desk 
Sep 11, 2025
An undated image. — Canva
The Federal Board of Revenue (FBR) has officially announced a comprehensive plan to change Pakistan's tax-to-GDP ratio from the current 10.24% to 18% in the medium term.
The plan was presented in a high-level briefing attended by significant representatives of the business community, and it covers digitalisation, institutional reforms, and human resource development.
The meeting chaired by FBR Chairman Rashid Mahmood included members of the Overseas Investors Chamber of Commerce and Industry (OICCI), the Pakistan Business Council (PBC) and other panel members.
Earlier in October 2024, the brief was approved by the Prime Minister Shehbaz Sharif in October 2024, as this provides a pathway to close tax gaps and strengthen revenue collection.
Accordingly, the FBR tax-to-GDP share is projected to grow to 14%, the provincial share is predicted to grow by 3%, and the petroleum levy will contribute 1%. This essentially meets the agreed target of 18%.
Officials stressed that technology and streamlined processes will be the focus of the reforms.
Member Inland Revenue Operations Dr Hamid Ateeq Sarwar provided an overview of the key reforms across people, technology and processes.
It is now recruiting 1,600 new auditors and increasing the audit capacity, while also commencing training at top universities and creating performance evaluations for auditors with the aim of ensuring transparency and efficiency.
Participants were also shown demonstrations of technology-driven reforms, which have already delivered results. The FBR’s tax-to-GDP ratio rose from 8.8% in 2023-24 to 10.24% in 2024-25.
Initiatives such as the Faceless Customs Appraisement system have increased revenue per goods declaration by 17.3%, cut port dwell times, and reduced demurrage costs.
Enforcement actions also generated eight times more revenue in 2024-25 compared to the previous year.
Chairman Rashid Mahmood emphasised the FBR’s commitment to taxpayer facilitation, announcing a new facilitation division at Karachi’s Large Taxpayer Office (LTO).
Furthermore, senior officers will directly engage with taxpayers, while a proposed joint committee of the PBC, OICCI, and FBR will work to resolve valuation and policy issues.
