ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday praised the Federal Board of Revenue (FBR) for securing a record 5.9 million tax return filings in fiscal year 2025, a 17.6 per cent increase from last year, terming it evidence of growing public trust in the government’s economic direction.
In a statement, the prime minister commended FBR officials for their merit-based performance and thanked citizens for demonstrating fiscal responsibility.
He noted that the inclusion of 900,000 new filers in the tax net marks a significant milestone towards formalising the economy.
“With the grace of Allah, the Almighty and the continuation of structural reforms, the results are encouraging,” the prime minister said, adding: “ensuring merit, accountability and transparency within the FBR has been the government’s foremost priority”.
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PM Sharif said a performance-driven culture had been introduced by rewarding capable officers and discouraging inefficiency. He also highlighted personal oversight of the FBR’s digitisation drive and weekly review meetings to streamline processes and curb corruption.
The prime minister said simplification of returns and the automation of port clearances had reduced corruption and improved transparency. He further cited the expansion of the point-of-sale (POS) system as a key measure against sales tax evasion. He noted that tax revenue rose by Rs9 billion compared to last year, calling it proof that FBR reforms are bearing fruit.
According to official FBR data, 5.9 million income tax returns were filed by Oct 31, 2025, compared to 5 million last year. Of these, 3.6 million filers submitted payments along with their returns, an 18.6 per cent increase year on year.
Individual taxpayers collectively paid Rs69 billion, up from Rs60 billion a year earlier, representing a 15 per cent rise. While these figures appear promising, experts caution that the country’s narrow tax base, chronic leakages, and over-reliance on salaried taxpayers continue to undermine fiscal sustainability.
However, some experts argue that the increase, though notable, remains modest when adjusted for inflation and economic growth, suggesting that deeper structural reforms, not just procedural digitisation, are still required. They say that while filing numbers have improved, the tax-to-GDP ratio remains stagnant, and revenue mobilisation continues to rely heavily on indirect taxation. Persistent issues of administrative inefficiency, policy inconsistency, and weak enforcement, they say, still plague the tax machinery.
Copyright Business Recorder, 2025