Islamabad – The federal government has sounded the alarm over a soaring revenue shortfall, directing the Federal Board of Revenue (FBR) to urgently ramp up tax collection efforts after the institution fell behind its targets during the first five months of the fiscal year.
In a high-level review meeting, Prime Minister Shehbaz Sharif expressed serious concern over the FBR missing its revenue benchmarks by more than Rs400 billion, calling the situation “untenable” amid Pakistan’s fragile economic stabilization push. He instructed the tax authority to intensify its drive, widen the tax net and deploy stricter mechanisms to curb evasion across all sectors.
Officials briefed the premier that although progress has been made in digitising customs operations, increasing transparency and improving the speed of container clearance, much more needs to be done to meet the government’s broader fiscal objectives. The prime minister directed FBR officials to work aggressively toward achieving an 11% tax-to-GDP ratio, a key benchmark for economic recovery.
The meeting also reviewed the crackdown on smuggling and illicit cigarette production — two areas long notorious for bleeding the national exchequer. The prime minister applauded enforcement agencies for tightening monitoring processes and deploying dedicated personnel to ensure that all manufacturing remains aligned with tax regulations.
Shehbaz Sharif also called for timely issuance of sales tax refunds, stressing that compliant taxpayers must not be inconvenienced due to bureaucratic delays. Officials assured the premier that improved workflows, automated systems and better coordination will help restore confidence among genuine taxpayers.
Economic experts, however, warn that without decisive reforms and enhanced enforcement capacity, bridging such a significant gap will remain a challenge. They note that while the FBR leadership has hinted at avoiding new taxes, reliance on compliance and digitisation alone may require sustained political support and rapid execution on the ground.
Despite the hurdles, the government insists that digitisation, wider data integration and stronger checks on tax evasion can help Pakistan move toward a more stable and transparent revenue system. For now, all eyes remain on FBR’s ability to close the shortfall before it derails the broader fiscal roadmap.
This story has been reported by PakTribune. All rights reserved.