Islamabad 23 July: The number of income tax return filers in Pakistan reached over 7.2 million by June 30, 2025 — a 60% jump from 4.5 million in 2024 — thanks to the Federal Board of Revenue’s (FBR) reform and digitisation drive.
This milestone was highlighted in a high-level meeting on FBR reforms, chaired by Prime Minister Shehbaz Sharif.
According to a statement released by the Prime Minister’s Office the meeting revealed that enforcement measures and structural changes had led to a notable 1.5% increase in the tax-to-GDP ratio in 2025.
Although there has been a 1.5% improvement in the tax-to-GDP ratio in 2025, Pakistan’s overall ratio remains among the lowest in the region. Many sectors, especially agriculture and the informal economy, remain largely untaxed or under-taxed.
Tax revenue from the retail sector saw a significant boost of Rs455 billion, driven by the integration of the Point-of-Sale (POS) system and compliance from retailers. A new appeals mechanism has also been established to ensure quick case resolution via video conferencing.
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Further, reforms led to a 2.16% decrease in the weighted average tariff on imports, cutting raw material costs for local manufacturers. International best practices will be considered in ongoing digital reforms.
Prime Minister Shehbaz Sharif commended the FBR team but stressed the need for sustainable progress, urging a clear action plan, expanded enforcement, and restructuring of the FBR Digital Wing. He also emphasized inclusive policymaking and prioritized the ease of doing business in future reforms.
