Pakistan Tax Reforms: PM Orders Validation by Reputable Firms
- islamabad—Pakistan is overhauling its tax system,with Prime Minister Shehbaz Sharif instructing the Federal Board of Revenue (FBR) to enlist international experts for third-party validation of ongoing reforms.
- The prime minister's office announced that Sharif was briefed on the progress of a user-kind digital tax return system, including versions in Urdu and other local languages.
- Sharif expressed satisfaction with the Faceless Customs Assessment System, noting its positive impact on revenue and customs clearance times.
Pakistan’s tax system is undergoing a major transformation! Prime Minister Sharif has ordered the Federal Board of Revenue (FBR) to bring in global firms to validate ongoing tax reforms, a significant step toward a more efficient adn transparent system. This includes introducing simplified digital tax return forms in Urdu and other local languages, designed to ease the process for taxpayers. The FBR also reported a considerable recovery of Rs36.14 billion from long-pending litigation cases, strengthening revenue collection efforts. News Directory 3 is following the story.Discover what’s next as pakistan aims to boost revenue and streamline its tax processes with thes vital changes in place.
Pakistan Aims to Boost Revenue with Streamlined Tax System,Third-Party Audits
Updated June 4,2025
islamabad—Pakistan is overhauling its tax system,with Prime Minister Shehbaz Sharif instructing the Federal Board of Revenue (FBR) to enlist international experts for third-party validation of ongoing reforms. A key focus is the introduction of simplified tax return forms to ease compliance.
The prime minister’s office announced that Sharif was briefed on the progress of a user-kind digital tax return system, including versions in Urdu and other local languages. The current tax form has been criticized as overly complex.
Sharif expressed satisfaction with the Faceless Customs Assessment System, noting its positive impact on revenue and customs clearance times. He also received an update on reforms at Pakistan Revenue Automation Ltd (PRAL).
The government is committed to enduring institutional reforms to stabilize Pakistan’s economy, Sharif stated, adding that institutions are working to eliminate corruption and enhance transparency. He cited recent economic indicators as proof of the government’s policies yielding positive results.
FBR recovers Rs36bn in two cases after IHC ruling
In related news, the FBR has recovered Rs36.14 billion in taxes from two long-standing litigation cases, according to the finance ministry. This development follows the prime minister’s directive to strengthen the FBR’s legal strategy.
The Islamabad High Court (IHC) recently ruled in favor of the FBR in three key cases. The most significant involved a tax recovery case against Bahria Town, where the court upheld the FBR’s right to recover Rs26.446 billion. Two other corporate cases, worth Rs9.7 billion combined,were also decided in the FBR’s favor.
The FBR is actively pursuing the recovery of the remaining amounts owed in these cases, reinforcing its commitment to accountability. The successful resolution of these cases, some pending for nearly a decade, is expected to significantly boost national revenue collection.
What’s next
The FBR will continue to focus on implementing digital solutions and pursuing legal strategies to recover outstanding revenues, aiming to create a more efficient and transparent tax system.