The Federal Board of Revenue has widened enforcement in the retail sector, installing point-of-sale systems at more than 40,000 large shops and outlets across Pakistan.
This reflects coverage of 38 percent of Tier-1 retailers, marking a major step in documenting the economy.
Pakistan’s tax-to-GDP ratio improved to 10.3 percent in 2024-25. This is the highest level in years and a strong jump from 8.8 percent in the previous year.
The improvement has been driven by higher direct taxes, which now contribute 5.1 percent of GDP while sales tax accounted for 3.4 percent of GDP.
FBR also reported faster legal settlements as dispute resolution helped recover Rs. 255 billion.
Targeted taxpayer reminders lifted admitted tax liability to Rs. 218 billion in 2024-25, up from Rs. 160 billion a year earlier.
Digital enforcement continued to deliver results with real-time production monitoring recovering Rs. 25 billion in the sugar sector. Another Rs. 12.8 billion was recovered from the cement sector.
FBR officials say the strategy aims to broaden the tax base and plug leakages. More enforcement actions and digital systems are planned in the coming year to build on the momentum.