Islamabad, November 15, 2025: Pakistan’s revenue collection from import duties and taxes increased by 25 percent this year despite reductions in tariffs, the government said on Saturday. The announcement came as Prime Minister Shehbaz Sharif chaired a weekly review meeting on tax reforms, directing officials to accelerate modernization of the country’s revenue system.
The Federal Board of Revenue (FBR), Pakistan’s chief tax authority, has been central to the government’s reform drive, which includes automation, digital monitoring, and artificial intelligence to curb leakages and meet ambitious tax targets.
Officials told the meeting that tariff reforms implemented this year were supported by improvements in customs processes, while duty-free imports of raw materials and intermediate goods rose sharply to boost manufacturing and exports.
“Tariff reforms this year have had no negative impact on revenue collection,” the officials said. “Instead, duties and taxes at the import stage have increased by 25 percent, despite only a 3.6 percent increase in the volume of dutiable goods.”
Duty-free imports jumped 41.5 percent, primarily driven by raw materials and intermediate items, a trend described as “a sign of improved productivity at the industrial level.”
The prime minister said the latest economic indicators validated the government’s reform agenda, reflecting “steadily improving economic activity.” He added that efforts to modernize and enhance transparency in the FBR were producing tangible results.
Sharif also instructed authorities to intensify measures against tax evasion, particularly in high-revenue sectors such as tobacco and tiles, and to close gaps in the tax collection system.
Last month, the FBR reported a significant increase in income tax return filings, with 5.9 million returns submitted by the end of October, up from five million in the same period last year — a 17.6 percent rise. Of these, 3.6 million taxpayers filed returns with tax payments, marking an 18.6 percent increase over 2024.
