ISLAMABAD: Prime Minister Shehbaz Sharif announced that the government is accelerating the pace of reforms within the Federal Board of Revenue (FBR), his office said on Thursday, lauding Pakistan’s tax authority for surpassing its Rs12.957 trillion [$46.6 billion] revenue target for the previous fiscal year.
Finance Minister Muhammad Aurangzeb announced on Wednesday that the FBR’s revenue collection for fiscal year 2025-26 exceeded Rs13 trillion [$46.76 billion], surpassing its Rs12.957 trillion target. Pakistan has attempted to introduce reforms within the FBR in recent years to enhance tax collection and making the body shift toward a tax system with minimal human interaction, using automated processing that it refers to as a “faceless” system.
Sharif met a delegation of FBR officers in Islamabad to congratulate them on the tax authority meeting its revenue targets. He said the FBR had paid Rs600 billion [$2.16 billion] in tax refunds during FY 2025–26, which facilitated the business community and helped promote exports.
“The pace of ongoing FBR reforms is being accelerated further,” Sharif was quoted as saying by the Prime Minister’s Office (PMO). “Expanding the tax base, increasing transparency, and improving services for taxpayers remain the top priorities of FBR reforms.”
The premier explained that the FBR’s new operating model will be based on a digital, faceless tax administration system with minimal human intervention or involvement. Sharif credited the ongoing reforms in the FBR and the government’s focus on digitalization helping the FBR achieve a record revenue target of $46.6 billion.
He hoped that FBR field formations and officers would achieve this year’s tax target of over Rs15 trillion [$53.96 billion] through the same dedication and efforts.
However, he warned FBR officers against committing excesses, urging them to prioritize facilitating taxpayers, the business and industrial community.
“There is no place for corrupt elements in the FBR,” Sharif said.
The PMO statement said that the Karachi Large Taxpayer Unit, a regional office of the FBR, collected Rs528 billion [$1.9 billion] while the Lahore Large Taxpayer Unit collected Rs261 billion [$0.94 billion] during FY26.
Pakistan has eyed increasing its tax revenue in line with recommendations of the IMF as it eyes sustainable economic growth. At around 10 percent, Pakistan’s tax-to-GDP ratio remains among the lowest in the world.
