
FBR Reports Drop in Tax-to-GDP Ratio Despite Revenue Growth
FBR reports Pakistan’s tax-to-GDP ratio falling to 4.75% in 1HFY26 despite 9.55% growth in tax revenue, as GDP expansion outpaced collections, according to Ministry of Finance data.

FBR reports Pakistan’s tax-to-GDP ratio falling to 4.75% in 1HFY26 despite 9.55% growth in tax revenue, as GDP expansion outpaced collections, according to Ministry of Finance data.

Punjab Finance Minister Mujtaba Shuja has acknowledged corruption within PRA, saying officials are involved in tax evasion as the government rolls out a new system to strengthen revenue collection.

The Federal Board of Revenue has censured a Customs Inspector after a detained liquor consignment was wrongly included in a destruction list, even though the court had already set aside the detention order.

FBR has issued a Rs188.9 million tax demand on Sazgar for TY2023. The company has challenged the order through rectification and appeal and expects relief.

As IMF talks approach, FBR targets Rs217bn in super tax recoveries to reduce a Rs345bn revenue gap, offering installment relief to businesses amid liquidity concerns.

Sindh Revenue Board projects over 20% revenue growth in FY2026, driven by digital reforms, expanded tax base, and improved compliance across key service sectors.

Pakistan’s salaried class paid Rs315 billion in income tax during Jul–Jan FY2026, up 10.5%, while over 254,000 skilled professionals left the country in 2025 amid rising tax pressure.

FBR Chairman Rashid Mahmood Langrial told the Senate Standing Committee on Finance that powerful figures are obstructing anti-tax evasion efforts and offered an in-camera briefing to reveal names. FBR has recovered Rs70 billion in super tax so far.

The Federal Board of Revenue revealed that its compliance SMS campaign reached even Finance Minister Muhammad Aurangzeb, contributing to one million new tax returns. Senate members reviewed privacy concerns, super tax recovery, and banking SMS charges.

The Government of Pakistan has announced December 2026 as the target date for implementing sweeping tax simplification reforms. A detailed strategy, due by May 2026, will focus on reducing tax rates, limiting special regimes, cutting excessive withholding taxes, and harmonizing federal and provincial taxation.