The Federal Board of Revenue (FBR) has installed point-of-sale (POS) systems at 40,000 retail outlets during FY2024–25, expanding digital coverage to 38 percent of Tier-1 retailers as part of efforts to boost transparency and tax compliance in the retail sector.
According to an FBR performance report, enforcement on large retailers intensified over the year, significantly widening the scope of digital monitoring. The initiative is part of broader fiscal reforms aimed at formalising the retail economy and broadening the tax base.
The report revealed that dispute resolution and legal settlements generated Rs255 billion in additional revenue, while targeted taxpayer communication helped raise admitted tax liabilities to Rs218 billion in FY25, up from Rs160 billion in the previous year.
FBR data showed Pakistan’s tax-to-GDP ratio improved to 10.3 percent in FY25 from 8.8 percent in FY24 — marking the first return to double digits in five years. Officials attributed this growth to stronger enforcement, better documentation, and increased direct tax collection, which reached 5.1 percent of GDP, followed by sales tax at 3.4 percent.
The report also noted that real-time production monitoring systems added Rs25 billion in revenue from the sugar sector between July and December 2024 and Rs12.8 billion from the cement sector over the fiscal year.
Officials said that the expanding use of digital tools — including POS systems, data analytics, and automated production monitoring — is driving improved compliance, particularly among Tier-1 retailers, and strengthening FBR’s enforcement capabilities across key sectors of the economy.
