Islamabad, April 5, 2025 – Finance Minister Muhammad Aurangzeb has announced that Pakistan is on course to achieve a tax-to-GDP ratio of 10.6% by the end of the current fiscal year, marking a major step forward in the country’s fiscal reform agenda.
Speaking at a press conference on Saturday, Aurangzeb expressed optimism about Pakistan’s trajectory, noting that this would be a significant improvement from the 8.8% recorded in the previous fiscal year.
“We are not stopping at 10.6%. Our medium-term goal is to take the tax-to-GDP ratio to 13.5%,” Aurangzeb stated, underlining the government’s commitment to sustainable revenue generation. He highlighted that revenue collection is set to increase by 32.5% on a year-on-year basis, reflecting the broader success of tax reforms.
According to Aurangzeb, the tax base in Pakistan is expanding rapidly. The number of active tax filers has doubled from 2 million to 4 million by October 31, while the total number of return submissions has exceeded 6 million. These developments indicate growing taxpayer compliance and enhanced public participation in the formal economy.
He credited digital transformation for part of the revenue boost, especially in the customs sector where enforcement improvements have resulted in a 16% increase in revenues. The track-and-trace system, a critical reform for monitoring production and sales, is now fully operational in the fertilizer, sugar, and tobacco sectors. Other key sectors, including cement, beverages, and cotton, are scheduled to be integrated soon.
Aurangzeb emphasized that tax filing is becoming easier for citizens, especially the salaried class. Through the use of modern technology and simplified processes, individuals will be able to file their returns from home without needing assistance from tax consultants. This user-friendly approach is expected to further strengthen Pakistan’s tax culture.
In closing, Aurangzeb reiterated the government’s resolve to build a transparent and efficient tax system, which he sees as vital for Pakistan’s long-term economic stability and independence from external financial aid.