Islamabad, July 2, 2025 – Prime Minister Shehbaz Sharif on Wednesday commended the Federal Board of Revenue (FBR) and the Ministry of Finance for achieving an unprecedented 42% surge in tax collection during the fiscal year 2024-25 — marking the most significant year-on-year revenue growth in a decade, as reported by APP.
Chairing a high-level weekly review meeting on FBR reforms and digitization, Shehbaz expressed deep appreciation for the reforms that made the exceptional collection possible. The briefing revealed that FBR secured an additional Rs865 billion in revenue compared to the previous year, largely due to the enforcement of new tax laws and digital reforms. This reflects an eightfold increase in incremental revenue, pushing the federal revenue-to-GDP ratio to 11.3% — a 1.5% improvement over last year.
Shehbaz emphasized that no room for institutional complacency would be tolerated as the government pursues ambitious revenue and economic goals. “All departments must function with full commitment,” he declared, reaffirming his direct oversight over revenue collection and policy execution.
He issued a stern but encouraging reminder to the FBR to maintain respectful and supportive relations with taxpayers. Shehbaz also directed all public institutions to provide full support to the revenue authority, particularly in strengthening tax enforcement and expanding the tax base through digital means.
To further enhance tax collection, the Prime Minister gave strategic instructions to FBR. These include expanding the Track and Trace Digital Production System across all manufacturing stages, digitizing tax-noncompliant businesses, increasing coverage of the Point of Sale (POS) system in retail, and improving taxpayer facilitation through accessible and responsive FBR offices.
The Track and Trace system, which is already operational in sugar, tobacco, and fertilizer sectors, will now be extended to cement and other industries, signaling the government’s serious push toward documentation and transparency.
During the meeting, Shehbaz also lauded the successful passage of the 2025-26 federal budget and reiterated the government’s full commitment to restoring fiscal discipline and promoting sustainable economic growth.
The review was attended by key cabinet members including Information Minister Attaullah Tarar, Law Minister Azam Nazeer Tarar, the FBR Chairman, and senior officials, all of whom received praise from Shehbaz for their role in the historic tax collection milestone.