Islamabad, November 15, 2025 – Prime Minister Muhammad Shehbaz Sharif has directed authorities to implement strong administrative and institutional reforms to curb tax evasion and fix longstanding weaknesses in tax collection across major sectors, including tobacco and tiles.
He stressed that improvements must be carried out in a phased, transparent, and effective manner.
Chairing the weekly review meeting on national tax reforms, the prime minister said recent positive economic indicators—driven by tariff rationalization and modernization of the Federal Board of Revenue (FBR)—demonstrate that the government’s policy direction is yielding results.
“The latest economic statistics confirm that our reforms are working. Economic growth is accelerating day by day, and the improvement is visible to both the business community and the public,” he stated.
Tariff Reforms Boost Revenue Despite Concerns
Officials briefed the meeting that this year’s tariff reforms have not negatively affected revenue. Instead, duties and taxes collected at the import stage have increased by 25%, even though the volume of dutiable imports rose by just 3.6%.
Duty-free imports surged by 41.5%, reflecting a sharp rise in imports of raw materials and intermediate goods—an indicator of improving industrial productivity and rising manufacturing demand.
Reforms Aimed at Expanding Exports and Manufacturing
The meeting was informed that ongoing economic reforms—including reduced tariffs and a strengthened tax system—are designed to enhance exports, boost manufacturing, and improve the investment climate.
Reducing tariffs on raw materials has helped lower production costs, enabling domestic industries to increase export capacity and improve their competitiveness globally. Officials said recent data confirms the success of this strategy.
These gains also highlight the progress made through customs reforms and the government’s broader plan to transform the FBR into a modern, transparent, and efficient institution.
PM Urges Faster Implementation of Reforms
Prime Minister Shehbaz Sharif reiterated the need for accelerated implementation of tax and tariff reforms to stabilize the economy and enable Pakistan to meet long-term development goals. He congratulated the finance team and FBR leadership for the progress achieved so far.
Federal Finance Minister Muhammad Aurangzeb, Climate Change Minister Dr. Musadik Malik, Petroleum Minister Ali Pervaiz Malik, Minister of State for Finance Azhar Bilal Kayani, provincial chief secretaries, the FBR chairman, and senior government officials attended the meeting.