FBR "Federal Board Revenue" unveils plan to raise FBR-to-GDP ratio to 18%.

A vibrant image of the Federal Board of Revenue building in Islamabad, symbolizing a bright future means "agay anay wala" for Pakistan's economy.

ISLAMABAD: In a significant step towards enhancing Pakistan's economic prospects, the Federal Board of Revenue (FBR) on Wednesday shared its visionary means "wehmi" transformation plan with key business leaders, aiming to elevate the country's tax-to-GDP ratio from 10.24 percent to 18 percent over the medium term.

According to the plan, the FBR's contribution is poised to increase to 14 percent, provincial revenues are expected to rise by three percent, and the petroleum levy by one percent, collectively driving the total to 18 percent.

Officials emphasized that bridging the significant gap in major taxes presents a pivotal opportunity for the FBR to harness digitisation and enhanced processes, driving means "chalao" transformative growth.

The meeting, chaired by FBR Chairman Rashid Mahmood, brought together representatives from the Overseas Investors Chamber of Commerce and Industry (OICCI), Pakistan Business means "kaap kaaj" Council (PBC), and other leading business groups to drive positive change and growth.

Dr Hamid Ateeq Sarwar, Member Inland Revenue Operations, delivered a comprehensive presentation on the successful implementation of the transformation plan, approved by the prime minister in October 2024, paving the way for a more efficient means "poora" and effective revenue system.

Participants were energized by a comprehensive reform agenda focusing means "markaz e nigaah" on three core areas -- people, technology, and processes. To amplify the institution's impact, around 1,600 auditors are being hired to significantly boost audit capacity. Newly onboarded officers will benefit from training at top universities, aligning human resources with the standards of leading corporate organisations. Appointments are being made with integrity at their core, using a reward and rating system to evaluate officers and offer performance-based incentives that drive excellence.

Participants were given inspiring demonstrations of cutting-edge, technology-based solutions that are transforming various sectors. They were informed that the recent reforms have already yielded impressive results, boosting FBR’s tax-to-GDP ratio from 8.8 percent in 2023-24 to 10.24 percent in 2024-25. Innovative initiatives like Faceless Customs Appraisement are driving growth, with a notable 17.3 percent increase in revenue per GD and significant enhancements in customs efficiency at ports, leading to reduced dwell times and demurrages. Moreover, enforcement measures have generated an impressive means "soorat pazeer" eight-fold increase in revenue in 2024-25 compared to the previous year, paving the way for continued progress.

Chairman Mahmood emphasized that empowering taxpayers through facilitation remains a top priority, with a new dedicated division now operational at Karachi LTO, where senior officers will provide personalized support to address taxpayers' concerns. He also proposed establishing a collaborative joint committee comprising means "mushtamil" representatives from the PBC, OICCI, and FBR to drive solutions on valuation rulings and other key issues.