ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb emphasized on Wednesday it was crucial to widen the tax net by removing the “non-filer category” after presenting the first federal budget of the newly elected Pakistani administration which he said was in line with the International Monetary Fund (IMF) requirements.
The non-filer category includes those individuals or entities who, despite earning taxable income, do not file returns and refuse to be formally documented or contribute to the tax base as required.
Pakistan has faced significant challenges with tax evasion and a low ratio of tax filers compared to its population. A considerable number of potential taxpayers either avoid taxes altogether or do not file their returns, which leads to substantial revenue losses for the government.
Speaking to Pakistan’s Geo TV, Aurangzeb said he wanted to take the country to a sustainable tax-to-GDP ratio in the next three to five years.
“I don’t understand this term of non-filer,” he said. “This is the only country where there is a category of non-filers. What is a non-filer? Either you are paying taxes and you are on the active tax list or you are not.”
“The eventual end goal is that we have to eliminate this non-filer category from this country,” he added.
The government has set an ambitious revenue collection target of Rs13 trillion, which comes to about $47 billion, in the next fiscal year raise the overall tax-to-GDP ratio of 9.5 percent.
The minister said the budget had introduced punitive measures for those who refused to file taxes so they thought twice before refusing to bring their income on record.
Asked about the enforcement of tax reforms, he said the government was striving to digitize the whole system.
“The end-to-end digitization will help us with several things,” he said. “Why don’t people want to come into the [tax] net? They are afraid of being harassed. They think they will not be treated properly. The more we remove the human intervention in FBR [Federal Board of Revenue], that is the way to create trust and earn trust.”
Aurangzeb said the government had decided to treat health, education and agriculture as priority sectors and protected the salaried class.
However, he reiterated that the government’s aim was to move a direction where everyone was contributing to the national economy.
Pakistan’s finance chief pushes tax reforms matching IMF guidelines following budget presentation
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Pakistan’s finance chief pushes tax reforms matching IMF guidelines following budget presentation
- Muhammad Aurangzeb says the government is striving to digitize tax system for improved revenue collection
- He says that he wants to take the country to a more sustainable tax-to-GDP ratio in the next three to five years
Pakistan remittances seen surpassing $40 billion in FY26 as Saudi Arabia leads November inflows
- The country’s November remittances rose 9.4 percent year-on-year to $3.2 billion, official data show
- Economic experts say rupee stability and higher use of formal channels are driving the upward trend
ISLAMABAD: Pakistan’s workers’ remittances are expected to exceed the $40 billion mark in the current fiscal year, economic experts said Tuesday, after the country recorded an inflow of $3.2 billion in November, with Saudi Arabia once again emerging as the biggest contributor.
Remittances are a key pillar of Pakistan’s external finances, providing hard currency that supports household consumption, helps narrow the current-account gap and bolsters foreign-exchange reserves. The steady pipeline from Gulf economies, led by Saudi Arabia and the United Arab Emirates, has remained crucial for Pakistan’s balance of payments.
A government statement said monthly remittances in November stood at $3.2 billion, reflecting a 9.4 percent year-on-year increase.
“The growth in remittances means the full-year figure is expected to cross the $40 billion target in fiscal year 2026,” Sana Tawfik, head of research at Arif Habib Limited, told Arab News over the phone.
“There are a couple of factors behind the rise in remittances,” she said. “One of them is the stability of the rupee. In addition, the country is receiving more inflows through formal channels.”
Tawfik said the trend was positive for the current account and expected inflows to remain strong in the second half of the fiscal year, noting that both Muslim festivals of Eid fall in that period, when overseas Pakistanis traditionally send additional money home for family expenses and celebrations.
The official statement said cumulative remittances reached $16.1 billion during July–November, up 9.3 percent from $14.8 billion in the same period last year.
It added that November inflows were mainly sourced from Saudi Arabia ($753 million), the United Arab Emirates ($675 million), the United Kingdom ($481.1 million) and the United States ($277.1 million).
“UAE remittances have regained momentum in recent months, with their share at 21 percent in November 2025 from a low of 18 percent in FY24,” said Muhammad Waqas Ghani, head of research at JS Global Capital Limited. “Dubai in particular has seen a steady pick-up, reflecting improved inflows from Pakistani expatriates owing to some relaxation in emigration policies.”
