Prime Minister Shehbaz Sharif has tasked the Federal Board of Revenue (FBR) to increase its revenues through accelerated reforms. The focus is on bringing “wealthy” individuals into the tax net while avoiding placing additional burden on the poor. This comes as Pakistan aims to enhance its revenues and avoid pressuring the poor.

However, Pakistan’s opposition parties and government allies have criticized the budget, accusing authorities of overburdening the poor with taxes. In response, PM Sharif’s government has pledged to gradually consolidate fiscal policies, expand Pakistan’s existing tax base, improve tax administration, and ensure debt sustainability, while protecting vulnerable populations.

In a recent meeting chaired by the Prime Minister, the FBR informed him that 4.9 million individuals who can afford taxes have been identified using modern technology. PM Sharif has directed the FBR to prioritize bringing these “wealthy and well-off” people into the tax net, without placing additional burden on the poor.

During the meeting chaired by Pakistani Prime Minister Sharif, he was informed that the Federal Board of Revenue (FBR) had identified 4.9 million individuals who can afford to pay taxes, using modern technology. The Prime Minister directed the FBR to prioritize bringing these “wealthy and well-off” people into the tax net, while ensuring no additional burden is placed on the poor.

Additionally, the Prime Minister noted that the FBR had uncovered a tax refund fraud amounting to Rs 800 billion (around $3.8 billion) over the last four months. He stated that this reflected “positive results” by the authority.

Sharif emphasized that the country’s tax refund system will be further improved, and reforms within the FBR can enhance Pakistan’s overall revenue generation. However, he expressed regret over the “unnecessary delay” in implementing several projects related to FBR reforms.

The Prime Minister was also informed that the FBR’s trader-friendly mobile application has registered 150,000 retailers since April 1, 2024. He urged the authorities to continue consultations with retailers to make this system more effective.

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Last month, Pakistan passed a tax-heavy budget with an ambitious target of 13 trillion rupees ($47 billion) in tax revenue for the 2025 fiscal year - a nearly 40% increase from the previous year. This budget was crucial in securing a $7 billion loan program from the International Monetary Fund (IMF).