PM approves modern digital ecosystem for Pakistan revenue watchdog to increase collection
The prime minister issued the directives at a meeting he presided over to review ongoing reforms in the FBR, during which officials briefed participants about linking FBR data to a single hub for real-time monitoring.
The reforms are tied to the government's economic stabilization agenda and structural benchmarks under a $7 billion International Monetary Fund (IMF) program. Pakistan has one of the lowest tax-to-GDP ratios in the region, despite a population of more than 240 million.
Speaking at the meeting, Sharif said the country's economy was moving in the right direction, thanks to the ongoing FBR reforms, and the government could only reduce tax on common people by increasing the tax base and eliminating informal economy.
"An entire digital ecosystem should be created to strengthen the new [FBR] system," he said. "All data from raw material production and import, product manufacturing to consumer purchases should be linked to a single system."
In June, Sharif's government set a record-high tax collection target of Rs14.13 trillion ($47.4 billion) for the fiscal year 2025–26, marking a 9 percent increase from the previous year. Officials say meeting this goal is essential to reducing reliance on external debt and ensuring long-term fiscal sustainability.
The prime minister said this consolidated data, collected under the new FBR system, should be used for economic, strategic decision-making.
"The system should be made so effective that the entire value chain can be directly monitored digitally," the prime minister added.
Earlier this month, the FBR launched simplified digital tax returns for salaried individuals, aimed at increasing tax compliance and widening the narrow tax base.
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