PM Shehbaz urges FBR to expand net, raise tax to GDP to 11%

Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to widen the tax net and intensify efforts to raise Pakistan’s tax-to-GDP ratio to 11 percent to meet tax revenue targets.

He issued the instructions while chairing a weekly high-level review meeting on FBR affairs where officials briefed him on revenue targets, digitization initiatives and measures aimed at curbing tax evasion.

The Prime Minister also called for ensuring effective tax enforcement across all public sectors and guaranteeing timely release of VAT refunds.

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Prime Minister Shehbaz lauded the FBR for reducing customs clearance times through the use of modern technology and artificial intelligence and directed the department to further speed up clearance for both imports and exports.

He also commended the FBR and the law enforcement agencies for the crackdown on factories involved in illegal cigarette production, and urged the provincial governments to maintain full cooperation.

Officials informed the meeting that contact persons from the FBR and the Ministry of Revenue and Excise have been deployed across the country to bring the entire tobacco sector into the tax net, adding that a significant amount of illegal cigarettes had been seized in recent operations.

The meeting also reviewed the status of pending tax-related cases at various boards and institutions.

Separately, the prime minister met the chairman of WAPDA, who briefed him on development projects under the authority’s supervision. The discussion covered progress in improving water storage capacity and other administrative and technical issues, with Sharif updated on ongoing efforts to protect and expand the country’s water resources.