The Federal Board of Revenue (FBR) has unveiled significant progress on its comprehensive transformation plan, approved by the Prime Minister in October 2024, aimed at modernizing the institution through reforms in people, technology, and processes.
Member Inland Revenue Operations, Dr. Hamid Ateeq Sarwar, presented the details of the plan to eminent business leaders, outlining the wide-ranging measures that are reshaping Pakistan’s revenue authority.
A key focus of the reforms is strengthening human resources. FBR is hiring around 1,600 auditors to enhance audit capacity, while new officers will undergo training at top universities to bring professional standards on par with leading corporate organizations. Integrity-based appointments are also being prioritized, supported by a Reward and Rating System with attractive incentive packages for high-performing officers.
On the technology front, FBR has introduced digital production monitoring in critical sectors such as sugar, fertilizer, cement, beverages, tobacco, poultry, and textiles. The integration of data sources and digitization of processes will enable the department to link economic activity with tax return filings, identify tax evaders, and select audit cases through AI-driven risk parameters.
Dr. Sarwar highlighted that these interventions are not only increasing efficiency but also improving transparency and accountability. Demos of technology-driven solutions were shared with participants, who praised the initiatives.
The transformation plan has already yielded measurable results. Pakistan’s tax-to-GDP ratio has improved from 8.8% in FY2023-24 to 10.24% in FY2024-25. The newly launched Faceless Customs Appraisement initiative has raised revenue per Goods Declaration (GD) by 17.3%, while reforms in customs operations have reduced dwell time at ports and cut demurrage costs for importers. Enforcement measures have also paid off, with revenue from enforcement actions rising eightfold compared to last year.
In a major facilitation effort, FBR has established a dedicated Facilitation Division at LTO Karachi, where senior officers will personally attend to taxpayers’ concerns. The Chairman FBR also proposed forming a joint committee comprising representatives from the Pakistan Business Council (PBC), the Overseas Investors Chamber of Commerce & Industry (OICCI), and FBR to address issues related to valuation rulings and other matters.
Business leaders welcomed the pace of reforms, expressing optimism that these changes will broaden the tax net while reducing the burden on compliant taxpayers.
Concluding the session, the Chairman FBR thanked the participants for their input and stressed the importance of continued engagement with stakeholders. Representatives from PBC and OICCI also appreciated the initiative and encouraged regular dialogue between the business community and FBR.
