Business Community Urges Govt to Abandon FBR and Shift to AI Tax Collection

Senior business leaders and former presidents of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) have called for outsourcing the Federal Board of Revenue (FBR) and transferring the entire tax collection system to artificial intelligence.

Speaking at a session organized under the Businessmen Panel on the federal budget and its impact on Pakistan’s economy, former FPCCI President Nasser Hyatt Magoon said that instead of outsourcing airports, the government should outsource FBR.

He claimed that out of FBR’s 36,000 employees, around 15,000 are only engaged in issuing notices, arguing that the problem is not with people but with the system itself. He stressed that Pakistan’s tax structure should be fixed and handed over to AI-based automation.

He further alleged that the government itself has created a system that enables corruption, adding that the finance minister is a banker and economic stability claims are based on borrowing. He also criticized the Benazir Income Support Programme (BISP), saying Rs. 853 billion is being distributed, which he claimed is increasing dependency instead of empowerment.

Magoon added that 50% of the population has been pushed into poverty to achieve “stability,” and claimed the IMF had increased poverty levels from 25% to 50% in three years.

Former FPCCI President Zaki Ahmed Usman said the FBR ignores written submissions from the business community. He noted that Pakistan’s textile sector relies on 60% imports and said trade deficit cannot be reduced without developing import-substitution industries.

He added that commercial banks prefer lending to the government instead of industry, and around 50% of the federal budget goes into interest payments. He called for a long-term five-year industrial policy, improved security environment, and import-substitution strategy to revive industry and employment.

He further stated that local investment is essential to attract foreign investment, warning that high tax rates are crippling production. He said the government is unwilling to exit IMF programs and urged Pakistan to better utilize its global economic position while discouraging skilled youth from leaving the country.