Islamabad, May 14, 2025 – Prime Minister Shehbaz Sharif has launched a robust initiative to combat tax evasion, aiming to expand Pakistan’s tax base and reduce financial strain on the average citizen. During a high-level meeting focused on tax reforms and revenue enhancement, the prime minister issued directives to bring all eligible individuals and industries into the tax system while ensuring strict accountability for those facilitating tax evasion.
The prime minister stressed the importance of decisive action against tax evaders and any officials found complicit in such activities. “Expanding the tax net is critical to easing the burden on ordinary Pakistanis and ensuring a fair system,” he stated, underscoring the government’s commitment to equitable taxation.
Key Directives for Tax Reform
PM Shehbaz instructed authorities to fast-track the digital monitoring of key industries, including cement, with a deadline set for next month. He also emphasized stronger coordination with provincial governments to increase tax collection from the tobacco sector. Additionally, the prime minister called for accelerated efforts to resolve pending tax-related legal cases to recover significant public funds.
The meeting highlighted notable progress in tax collection, particularly through the implementation of the Track and Trace System. This technology has significantly boosted revenue from the cement industry, contributing billions to the national treasury. Similarly, the sugar sector saw a 35% increase in tax collection between November 2024 and April 2025, driven by enhanced monitoring and compliance measures.
Economic Stability and Future Goals
PM Shehbaz praised his economic team for their efforts in meeting the Federal Board of Revenue’s (FBR) targets for the current fiscal year. He expressed optimism about the nation’s economic trajectory, stating, “With collective resolve, Pakistan’s economy is on a path to stability and growth.” Ongoing reforms at the FBR are expected to raise tax revenue to 10.6% of GDP, marking a significant milestone in the country’s fiscal strategy.
The prime minister reiterated that broadening the tax base remains a cornerstone of his administration’s agenda, with the goal of lowering tax rates for the general public while ensuring sustainable revenue growth.
A Call for Collective Action
The government’s crackdown on tax evasion signals a broader push for transparency and accountability in Pakistan’s financial systems. By targeting non-compliant sectors and individuals, the administration aims to foster a culture of fiscal responsibility that supports long-term economic development.
As the nation moves toward greater economic stability, PM Shehbaz urged all stakeholders to contribute to the collective effort, emphasizing that a stronger tax system is vital for Pakistan’s progress.
