PM Shehbaz directs FBR to expedite sales tax refunds, strengthen tax compliance

PM Shehbaz at FBR

Islamabad, December 11, 2025 – Prime Minister Shehbaz Sharif on Thursday instructed the Federal Board of Revenue (FBR) to accelerate the release of sales tax refunds, aiming to improve liquidity for businesses and boost economic activity across the country.

During a weekly review meeting, the prime minister emphasized the need for stricter enforcement across all sectors, particularly targeting illegal operations such as underground cigarette factories. He directed provincial governments to fully cooperate with the FBR in its crackdown on tax evaders and illicit production units.

FBR officials briefed the prime minister on their recent enforcement actions, including the seizure of a significant quantity of illegal cigarettes. These actions are part of a broader effort to bring the tobacco sector under the tax net, curb tax evasion, and protect the national treasury.

The prime minister highlighted the importance of expanding the tax base and achieving the government’s ambitious target of an 11 percent Tax-to-GDP ratio. He stressed that broader compliance across all sectors is essential for stabilizing Pakistan’s fiscal position.

Acknowledging progress in customs operations, PM Shehbaz praised the FBR’s use of technology, including artificial intelligence, which has significantly reduced processing times for imports and exports. He instructed the board to continue reducing clearance times to improve trade efficiency further.

The meeting also covered pending tax cases in tribunals, with FBR officials assuring the prime minister that steady progress is being made.

Senior officials present at the meeting included Minister for Economic Affairs Ahad Cheema, Minister for Law Azam Nazeer Tarar, Minister for Information Ataullah Tarar, Minister for Petroleum Ali Pervaiz Malik, State Minister for Finance Bilal Azhar Kiani, Attorney General for Pakistan, and FBR Chairman Rashid Langrial.