PM Orders Digitization of Industrial Processes for Tax Net Expansion

Prime Minister Shehbaz Sharif has directed officials to digitize all industrial production methods to bring them into the tax system, particularly targeting those who evade taxes.

The Prime Minister issued these instructions while presiding over a weekly progress assessment regarding the Federal Board of Revenue (FBR) digitization and other improvements on Wednesday.

According to a statement from the Prime Minister’s Office (PMO), PM Shehbaz instructed that the Track and Trace Digital Production System be incorporated into the manufacturing and distribution phases of products to ensure all production is taxed.

The prime minister also instructed that the scope of the FBR’s Point of Sale (POS) system in the retail sector be broadened.

During the meeting, the Prime Minister received updates on the advancement of reform projects within the FBR.

The briefing highlighted that the Track and Trace Digital Production System has been completely implemented in the sugar, tobacco, and fertilizer industries and will soon be fully implemented in the cement and other industries.

The Prime Minister urged the FBR to maintain open communication channels to assist the business community and taxpayers.

PM Shehbaz commended the Finance Ministry and the FBR for achieving a 42% increase in federal tax revenues in FY 2024–25, which is the highest increase recorded in the last decade.

It was revealed that, as a result of reforms and the implementation of tax regulations, an additional Rs865 billion in revenue was generated in FY2024–25 as compared to the prior year, representing a historic eightfold rise.

The briefing also indicated that the federal revenue to GDP ratio was 11.3% in FY 2024–25, which is 1.5 percentage points greater than the prior year.

PM Shehbaz instructed all institutions to work diligently to achieve revenue and economic objectives in the upcoming fiscal year.

“No negligence will be accepted in achieving economic targets for Pakistan’s prosperous future,” the Prime Minister stated.

“I am personally monitoring all stages of revenue collection and the achievement of economic goals,” he added.

PM instructed FBR officers to treat the public respectfully and urged all government departments to fully support the FBR for the advancement of the national economy.