FBR Elevates Tax-to-GDP Ratio to 10.24%

ISLAMABAD, September 11, 2025 – The Federal Board of Revenue (FBR) has elevated Pakistan’s tax-to-GDP ratio from 8.8% in 2023-24 to 10.24% in 2024-25, fueled by the transformative reform plan endorsed by Prime Minister Shehbaz Sharif in October 2024. This overhaul has also sparked an eightfold surge in enforcement-driven revenue versus the previous year.

These milestones were unveiled during a strategic dialogue with Overseas Investors Chamber of Commerce and Industry (OICCI) and Pakistan Business Council (PBC) representatives, presided over by FBR Chairman Rashid Mahmood. Dr. Hamid Ateeq Sarwar, Member Inland Revenue Operations, illuminated the reform’s core pillars: people, technology, and processes.

Under this initiative, the FBR is recruiting around 1,600 new auditors, slated for elite training at premier universities to amplify audit capabilities. Furthermore, integrity-driven appointments are bolstered by a Reward and Rating System featuring lucrative incentive packages to lure and hold top talent.

On the technological front, the FBR is deploying digital production monitoring across key sectors like sugar, cement, fertilizer, beverages, tobacco, poultry, and textiles. Data integration and digitalized processes will tether economic activity to tax returns, while AI-powered risk parameters will steer precise taxpayer audits.

Attendees witnessed live demos of cutting-edge technology solutions, including faceless customs appraisement, which has boosted revenue per General Declaration (GD) by 17.3% and curtailed dwell time and demurrages at ports.

Business leaders applauded the strides in technology-driven reforms, affirming they enhance FBR transparency and accountability. Chairman Mahmood emphasized taxpayer facilitation, spotlighting the fresh division at LTO Karachi where senior officers will tackle taxpayer grievances head-on.

To address valuation and allied challenges, Chairman Mahmood suggested establishing a committee with PBC, OICCI, and FBR delegates. Business representatives embraced the reform momentum and voiced optimism that a broader tax net would alleviate pressures on compliant taxpayers.

The conclave wrapped up with reciprocal accolades and a pledge for sustained stakeholder collaboration.