Pakistan PM launches tax authority’s performance system amid IMF reform push

Pakistan Prime Minister Shehbaz Sharif addresses the launching ceremony of Performance Management System of the Federal Board of Revenue (FBR) in Islamabad on April 18, 2025. (APP)
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Updated 18 April 2025
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Pakistan PM launches tax authority’s performance system amid IMF reform push

  • The international lender wants digitization of FBR along with tax base expansion in Pakistan
  • The PM was briefed about FBR’s data-driven decision-making to ensure greater efficiency

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday launched a performance management system for Pakistan’s tax authority, urging officials to enhance efficiency and boost revenue collection to help reduce the country’s reliance on external debt, state media reported.
The move is part of broader reforms tied to Pakistan’s $7 billion loan program with the International Monetary Fund (IMF), which include overhauling the Federal Board of Revenue (FBR) through greater digitization, institutional accountability and tax base expansion.
The FBR, long criticized for inefficiency and underperformance, plays a central role in Pakistan’s fiscal framework and is under pressure to deliver sustained growth in tax revenues.
“If we want to move away from the International Monetary Fund (IMF), we must work hard to increase our revenues,” Sharif said at the launch event, according to the state-run Associated Press of Pakistan (APP).
He also described it as a long journey, adding more work was required to plug the loopholes in the system.
The newly launched performance system introduces evaluations of FBR officers based on defined metrics. Sharif said similar models would be introduced across other state institutions to promote a culture of accountability.
During the visit, officials also briefed the prime minister on separate reforms underway at the FBR, including the development of a data-driven decision-making framework. That system will pull information from entities like the National Database Registration Authority (NADRA) and banking institutions to track payments and asset acquisitions, as part of efforts to align the tax regime with international standards.
Authorities said over 35 additional companies had been added to the tax net as part of ongoing digitization efforts. Tax return forms have also been simplified, and preparations are underway for the nationwide rollout of a digital invoicing system.
Sharif acknowledged a 27 percent growth in FBR revenue over the past year but said more progress was needed to steer Pakistan out of its debt crisis and ensure fiscal stability.
Pakistan’s tax-to-GDP ratio remains among the lowest in the region, limiting the government’s ability to fund public services and increasing dependence on borrowing.
Strengthening the FBR is seen as critical to reducing the budget deficit and restoring investor confidence.
The prime minister also visited FBR’s newly established delivery unit, praising the officers as a “national asset” and expressing hope that the ongoing reforms would lead to a more transparent and effective tax administration.


Pakistan says responding to Afghan ‘offensive operations’ after border fire as tensions escalate

Updated 26 February 2026
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Pakistan says responding to Afghan ‘offensive operations’ after border fire as tensions escalate

  • Afghan Taliban spokesperson says “large-scale offensive operations” launched against Pakistani military bases
  • Pakistan says Afghan forces opened “unprovoked” fire across multiple sectors along shared border

ISLAMABAD: Afghanistan’s Taliban authorities said on Thursday they had launched “large-scale offensive operations” against Pakistani military bases and installations, prompting Pakistan to say its forces were responding to what it described as unprovoked fire along the shared border.

The escalation follows Islamabad’s weekend airstrikes targeting what it said were Tehreek-e-Taliban Pakistan (TTP) and Daesh militant camps inside Afghanistan in response to a wave of recent bombings and attacks in Pakistan. Islamabad said the strikes killed over 100 militants, while Kabul said dozens of civilians were killed and condemned the attacks as a violation of its sovereignty.

In a post on social media platform X, Afghan government spokesperson Zabihullah Mujahid said Afghanistan had launched “large-scale offensive operations” in response to repeated violations by the Pakistani military.

 

 

Pakistan’s Ministry of Information said Afghan forces had initiated hostilities along multiple points of the frontier.

“Afghan Taliban regime unprovoked action along the Pakistan–Afghanistan border given an immediate, and effective response,” the ministry said in a statement.

The statement said Pakistani forces were targeting Taliban positions in the Chitral, Khyber, Mohmand, Kurram and Bajaur sectors, claiming heavy Afghan casualties and the destruction of multiple posts and equipment. It added that Pakistan would take all necessary measures to safeguard its territorial integrity and the security of its citizens.

 

 

Separately, security officials said Pakistani forces had carried out counterattacks in several border sectors.

“Pakistan’s security forces are giving a befitting reply to the unprovoked Afghan aggression with full force,” a security official said, declining to be named. 

“The Pakistani security forces’ counter-attack destroyed Taliban’s hideouts and the Khawarij fled,” they added, referring to TTP militants. 

The claims from both sides could not be independently verified.

Cross-border violence has intensified in recent weeks, with Pakistan blaming a surge in suicide bombings and militant attacks on militants it says are based in Afghanistan. Kabul denies providing safe havens to anti-Pakistan militant groups.

The clashes mark the third major escalation between the neighbors in less than a year. Similar Pakistani strikes last year triggered weeklong clashes before Qatar, Türkiye and other regional actors mediated a ceasefire in October.

The 2,600-kilometer (1,600-mile) frontier, a key trade and transit corridor linking Pakistan to landlocked Afghanistan and onward to Central Asia, has faced repeated closures amid tensions, disrupting commerce and humanitarian movement. Trade between the two nations has remained closed since October 2025.