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Economic independence not possible without tax reforms: PM Shehbaz

Warns that without boosting revenues, Pakistan will remain stuck in a vicious debt cycle

18 April 2025
PM Shehbaz tax reforms Economic independence

Prime Minister Shehbaz Sharif on Friday delivered a powerful address during the inauguration of FBR’s Performance Management System, stating that the immediate resolution of trillions worth of pending tax cases is critical for Pakistan’s economic stability.

He warned that without significantly boosting revenues, Pakistan will remain stuck in a vicious debt cycle and under the grip of institutions like the IMF.

Calling FBR’s digitalisation journey “a step in the right direction”, the PM cautioned that true reform would require consistent effort, institutional strengthening, and data-driven governance. He applauded the 27% growth in tax revenues over the last year but insisted this progress must be accelerated.

The PM announced the rollout of a fully automated system to assess the performance of FBR officers. Under this system, promotions and financial incentives will be strictly performance-based. He visited PRAL, the digital invoicing system, and FBR’s new delivery unit, where he was briefed on integrations with NADRA and banking data to identify tax evaders and expand the tax base.

Bringing more into the net

Officials informed the PM that over 35 major companies have already been added to the tax net and that tax filing procedures have been simplified for the ongoing fiscal year. Shehbaz Sharif said past failures, such as delays in implementing the Track & Trace system, must not be repeated. “We must modernise FBR to meet international standards,” he stressed.

Security comes into focus

Later in the day, PM Shehbaz chaired a high-level security meeting that included federal ministers, IGs, chief secretaries, and representatives from all provinces, Gilgit Baltistan, and Azad Kashmir. The meeting focused on national security, intelligence sharing, and ongoing anti-terrorism efforts.

Officials shared that a National Threat Assessment and Fusion Centre has been set up within NACTA, and Safe City projects are underway across several major urban centres, including Karachi, Hyderabad, Larkana, Peshawar, and Gwadar. Islamabad already has a Forensic Science Agency, with Punjab's forensic systems also being upgraded.

PM Shehbaz Sharif said, “Pakistan’s enemies are rattled by our economic progress, but we will defeat terrorism so thoroughly that they won’t dare challenge us again.” He called for swift action against smuggling networks and illegal human trafficking rings. “Our fight against terrorism is a national jihad, and every institution must play its part,” he added.

He reiterated the federal government's commitment to enhance the capacity of provincial security institutions and emphasised that all differences must be set aside to ensure Pakistan’s security and sovereignty.