FBR revenue jumps 40% as Pakistan sustains fiscal discipline

September 03, 2026 (MLN): Pakistan has achieved three consecutive years of primary fiscal surpluses, with the government now focused on sustaining this discipline through reduced civil government running costs and lower debt servicing expenses.

This was highlighted at the "High Level International Dialogue on Taxation for Fiscal Sustainability in Pakistan," organised by the Asian Development Bank (ADB) at Marriott Hotel, Islamabad, where Federal Minister for Finance & Revenue, Senator Muhammad Aurangzeb, delivered the keynote address.

The Federal Board of Revenue (FBR) recorded a 40% increase in revenue collection over the past two years, with collection reaching Rs13tr by the end of last year. The tax-to-GDP ratio improved from 8.8% to 10.3% over the same period.

FBR's transformation is being built around three core pillars People, Process, and Technology. On the integrity front, neither the Finance Minister nor the Prime Minister has made or will make any "sifarish" (undue political influence) in appointments or postings, showing a strict two-way commitment to integrity within the organisation.

Capacity building efforts are also underway, with third-party auditors being used to strengthen operational capacity and officer training.

Technology has been described as the "game-changer" in this transformation. Digital Production Monitoring has moved from the design phase into full execution, directly generating additional sales tax revenues.

Digital invoicing now covers roughly 75% to 80% of national sales turnover in terms of registrations. PRAL, FBR's IT arm, has also been strengthened in governance and resources to support the new operating model passed by Parliament.

On the customs side, faceless assessment has been implemented to improve transparency and service quality for businesses. The average revenue per declaration has risen to Rs8.5 million, up from Rs7.6m, alongside strengthened customs enforcement and broader ecosystem development.

Unlike previous "boom-and-bust cycles," there is now full clarity and complete ownership at the Prime Minister and Cabinet level to carry these structural reforms through to completion.

Copyright Mettis Link News