PM Shehbaz directs action to expand tax net, boost FBR revenue

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Tuesday chaired a high-level review meeting focused on expanding the Federal Board of Revenue’s (FBR) tax base and increasing revenue collection.

The prime minister appreciated the efforts of the government’s economic team for putting the FBR on track to meet its revenue targets for the current fiscal year. He stressed the need to bring into the tax net those individuals and sectors that have the capacity to pay taxes but currently do not.

“There must be strict action against those involved in tax evasion,” said the prime minister, instructing authorities to also hold accountable officials who facilitate or protect tax evaders. He directed the use of modern technology to curb tax evasion and said that expanding the tax net remains a top priority for the government.

“Our goal is to reduce the burden on the common man by lowering the tax rate and increasing the number of taxpayers,” he said.

The prime minister further directed that the ongoing digital monitoring of the cement and other sectors should be completed by June this year, while efforts to enhance tax collection from the tobacco sector, in collaboration with provincial governments, should be accelerated.

He also called for effective legal follow-up on pending tax-related cases to ensure recovery of public funds.

“By the grace of Allah, the country’s economy is stable and progressing. Everyone must fulfil their responsibilities for national development,” the prime minister said.

During the meeting, officials briefed the prime minister that the complete implementation of the track and trace system across cement plants nationwide has significantly increased tax revenue. Similarly, in the sugar sector, the system’s application led to a 35 per cent increase in tax collection between November 2024 and April 2025.

It was also noted that under the prime minister’s leadership and ongoing FBR reforms, the target of increasing the tax-to-GDP ratio to 10.6 per cent is expected to be achieved.

Federal Ministers Azam Nazeer Tarar, Muhammad Aurangzeb, Ahsan Iqbal Cheema, Attaullah Tarar, Chairman FBR, and other senior officials attended the meeting.

Read next: Govt weighs auto-loan like mortgage plan to promote affordable housing