Pakistan PM launches tax authority’s performance system amid IMF reform push

Pakistan Prime Minister Shehbaz Sharif addresses the launching ceremony of Performance Management System of the Federal Board of Revenue (FBR) in Islamabad on April 18, 2025. (APP)

• The international lender wants digitization of FBR along with tax base expansion in Pakistan
• The PM was briefed about FBR’s data-driven decision-making to ensure greater efficiency

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday launched a performance management system for Pakistan’s tax authority, urging officials to enhance efficiency and boost revenue collection to help reduce the country’s reliance on external debt, state media reported.
The move is part of broader reforms tied to Pakistan’s $7 billion loan program with the International Monetary Fund (IMF), which include overhauling the Federal Board of Revenue (FBR) through greater digitization, institutional accountability and tax base expansion.
The FBR, long criticized for inefficiency and underperformance, plays a central role in Pakistan’s fiscal framework and is under pressure to deliver sustained growth in tax revenues.
“If we want to move away from the International Monetary Fund (IMF), we must work hard to increase our revenues,” Sharif said at the launch event, according to the state-run Associated Press of Pakistan (APP).
He also described it as a long journey, adding more work was required to plug the loopholes in the system.
The newly launched performance system introduces evaluations of FBR officers based on defined metrics. Sharif said similar models would be introduced across other state institutions to promote a culture of accountability.
During the visit, officials also briefed the prime minister on separate reforms underway at the FBR, including the development of a data-driven decision-making framework. That system will pull information from entities like the National Database Registration Authority (NADRA) and banking institutions to track payments and asset acquisitions, as part of efforts to align the tax regime with international standards.
Authorities said over 35 additional companies had been added to the tax net as part of ongoing digitization efforts. Tax return forms have also been simplified, and preparations are underway for the nationwide rollout of a digital invoicing system.
Sharif acknowledged a 27 percent growth in FBR revenue over the past year but said more progress was needed to steer Pakistan out of its debt crisis and ensure fiscal stability.
Pakistan’s tax-to-GDP ratio remains among the lowest in the region, limiting the government’s ability to fund public services and increasing dependence on borrowing.
Strengthening the FBR is seen as critical to reducing the budget deficit and restoring investor confidence.
The prime minister also visited FBR’s newly established delivery unit, praising the officers as a “national asset” and expressing hope that the ongoing reforms would lead to a more transparent and effective tax administration.