ISLAMABAD, April 19, 2025 – In a significant move aimed at modernizing Pakistan’s tax infrastructure and increasing fiscal accountability, Prime Minister Shehbaz Sharif on Friday inaugurated a Performance Management System at the Federal Board of Revenue (FBR). The newly introduced system is designed to digitize officer evaluations, strengthen institutional transparency, and improve the overall efficiency of the tax collection body.
Speaking at the launch event held in Islamabad, the prime minister emphasized the urgent need to strengthen Pakistan’s economic foundations by reducing its dependency on international lenders such as the International Monetary Fund (IMF). “If we want to move away from the IMF, we must work hard to increase our revenues,” the prime minister said, calling on FBR officers to demonstrate “unwavering commitment and full dedication” to transforming Pakistan into a debt-free nation.
The launch of the performance system follows a promising fiscal development—a 27% year-on-year increase in FBR revenues, which the prime minister described as a positive step forward. However, he warned that the journey toward sustainable growth is far from over. “There is still a long way to go, and we must plug the existing loopholes in our tax system,” he added.
The Performance Management System is part of a broader effort to instill a culture of meritocracy within the FBR. The system introduces a data-driven framework for evaluating the performance of tax officers. Promotions, financial incentives, and other career advancements will now be tied directly to measurable outcomes, aligning with global best practices in public sector management.
Prime Minister Sharif also lauded the efforts of Finance Minister Muhammad Aurangzeb, Secretary of Finance, Chairman FBR, and the broader team behind this strategic initiative. He further revealed that the model would eventually be replicated across other government departments, laying the groundwork for a more transparent and accountable civil service.
During his visit, the prime minister received briefings on several digital initiatives under FBR’s umbrella, including the role of Pakistan Revenue Automation Limited (PRAL), the upcoming digital invoicing system, and a newly established delivery unit. He interacted with staff and reviewed the infrastructure that supports the modernization of Pakistan’s tax machinery.
Officials informed the prime minister that the FBR is now actively incorporating data from NADRA, banks, and asset registries to improve tax compliance and identify previously untaxed economic activity. The digital invoicing system, which is ready for rollout, aims to enhance documentation, reduce tax evasion, and expand the country’s tax base.
Additionally, the FBR has simplified tax return forms for the current fiscal year to improve user experience. As a result, over 35 new companies have been brought into the tax net, further boosting revenue potential.
The prime minister expressed confidence in the team’s capabilities, calling the officers “a valuable national asset.” He stressed that their role will be pivotal in modernizing Pakistan’s tax system, enhancing transparency, and securing the country’s financial independence.
With reforms underway and digitization taking center stage, Pakistan’s tax authority is poised for transformation. As the country continues to face external and internal economic challenges, such performance-based reforms could prove vital in ensuring fiscal stability and sustainable growth in the long term.