ISLAMABAD, June 10, 2025 – In a major breakthrough for Pakistan’s judicial and revenue systems, the Islamabad High Court (IHC) has made significant strides in clearing a backlog of long-pending tax cases, some dating back over two decades. These cases had previously hindered the Federal Board of Revenue (FBR) from recovering more than Rs600 billion in outstanding dues.
According to report of a media outlet, in recent months, the IHC has vacated stay orders in 270 tax-related cases, which had long stalled the FBR’s ability to proceed with recoveries. This judicial progress comes amid broader efforts by the government and judiciary to strengthen fiscal governance and revenue collection.
Three division benches of the IHC took part in this accelerated process. One bench, comprising Justice Mohammad Azam Khan and Justice Raja Inaam Ameen Minhas, handled a large portion of the cases—173 in total—enabling the FBR to move forward with recovery of Rs424 billion. Another bench, made up of Justice Babar Sattar and Justice Sardar Ejaz Ishaq Khan, resolved 94 cases involving blocked recoveries of more than Rs150 billion.
A separate bench consisting of acting IHC Chief Justice Sardar Mohammad Sarfraz Dogar and Justice Raja Inaam Ameen Minhas disposed of three additional tax petitions from 2023 that had prevented the FBR from collecting Rs36 billion. Moreover, 125 of the 270 tax cases were specifically related to Income Tax References (ITR), Sales Tax References (STR), and matters under the Foreign Exchange Regulation Act (FERA).
These 125 cases had kept Rs290.51 billion stuck under ITR, Rs131.55 billion under STR, and Rs3.16 billion under FERA, respectively. Their resolution marks a critical moment for both legal clarity and public finance.
The recent progress follows direct engagement between the Prime Minister and Chief Justice of Pakistan (CJP) Yahya Afridi earlier this year. During their meeting, the Prime Minister stressed the urgent need for disposing of tax cases expeditiously.
Supporting these efforts, the National Judicial Policy Making Committee (NJPMC) held a meeting in April and formally urged high courts to form special benches for tax matters. Following these directions, the IHC’s Judicial Registrar presented a consolidation note, streamlining all pending tax-related cases for swift adjudication.
This wave of decisions not only boosts government revenue but also strengthens investor confidence and rule of law in Pakistan’s fiscal landscape.