Federal Minister for Finance Muhammad Aurangzeb on Tuesday participated in a panel discussion on “Revenue Mobilization in the Medium Term” at the International Monetary Fund (IMF) during the ongoing 2025 Spring Meetings here.
During the session, Minister Aurangzeb detailed the comprehensive measures being undertaken by the Pakistani government to enhance its domestic revenue collection capabilities.
Key Measures for Revenue Enhancement
The minister highlighted the government’s strategic focus on several key areas to broaden and deepen the national tax base. These include initiatives aimed at increasing the tax contribution from sectors such as agriculture, real estate, and retail and wholesale trade, bringing their share in line with their respective contributions to the national Gross Domestic Product (GDP).
Transforming Tax Administration
A significant part of the reform agenda, as outlined by the minister, involves the transformation of the Federal Board of Revenue (FBR). This transformation encompasses improvements in human resources, processes, and technology. The objective is to create a more efficient and taxpayer-friendly system.
Reducing Interface and Strengthening Compliance
Minister Aurangzeb also emphasized the government’s efforts to reduce direct interaction between taxpayers and tax collectors, aiming to minimize discretionary powers and enhance transparency. Alongside this, measures to strengthen enforcement and compliance mechanisms are being implemented to ensure fair and effective tax collection. The minister also mentioned the adoption of customized audits utilizing Artificial Intelligence (AI) to improve accuracy and target potential evasion.
Building Trust
Underscoring the foundational element for successful revenue mobilization, Minister Aurangzeb stressed the critical importance of building trust between the tax collecting agency and the people. He noted that a relationship based on trust is essential for fostering a tax culture and encouraging voluntary compliance.
