Islamabad Capital Territory

Islamabad | ReNews Pakistan

The Federal Board of Revenue (FBR) has prepared to brief Prime Minister Shehbaz Sharif on implementing a faceless system in Inland Revenue, restructuring the organisation and expanding digital measures to improve tax collection. According to Business Recorder, the briefing scheduled for Monday was also expected to cover efforts to narrow an estimated Rs 1 trillion tax gap across 18 sectors.

Sources said FBR headquarters remained open on Sunday to prepare the briefing. Officials compiled proposals covering the faceless system, the use of artificial intelligence to analyse tax returns, digitalisation and human resource reforms. Integrity concerns involving field offices were also on the prime minister’s radar, the sources added.

As part of efforts to reduce the difference between actual and potential tax receipts, digital monitoring of sales and production across major industrial sectors is targeted for completion by the end of December. The report said monitoring systems had been fully installed in sugar, cement, tobacco, tiles and fertiliser.

Installation is under way in textiles, packaged water, packaged juices and packaged milk. Equipment procurement for steel, poultry and tyres was completed by October 15, while procurement for tea, household electronics, leather, paper and board, and oil and ghee is scheduled for completion by October 30.

The Prime Minister’s Office has directed the FBR to submit comprehensive proposals for human resource reforms and organisational restructuring. The proposals are intended to strengthen tax administration, improve transparency and enhance institutional performance.

The briefing agenda also includes an integrated digital framework linking economic activity from raw material production and imports through manufacturing to consumer purchases. The proposed framework would bring information from these stages into a central data structure.

Data generated through the system would support economic planning and key government decisions. The measures outlined in the report concern tax administration and industrial monitoring, with the scheduled briefing intended to review progress on ongoing reforms and the next steps.

Islamabad | ReNews Pakistan

Pakistan’s economy grew by 2% in the final quarter of fiscal year 2025-26, covering April to June, while real estate activities relating to ownership of dwellings expanded by 3.92% and construction grew by 3.52%.

According to Table 3 of the Pakistan Bureau of Statistics’ Quarterly National Accounts, the overall industrial sector contracted by 4.70%, although construction maintained positive growth. The figures represent year-on-year changes measured at constant basic prices.

Growth in ownership-of-dwellings activities increased from 3.69% in the corresponding quarter of the previous fiscal year to 3.92% in April–June 2026. Construction growth, meanwhile, slowed from 17.51% to 3.52%, indicating continued expansion at a substantially slower pace.

The official statistics classify the housing-related category as “Real Estate Activities (Ownership of Dwellings)”. Growth in this category should not be interpreted as an equivalent increase in property prices or the volume of property transactions.

Overall economic growth also eased from 6.07% in the corresponding quarter a year earlier to 2%. Ownership-of-dwellings activities and construction therefore continued to expand despite the broader economic slowdown and contraction in industry.

Islamabad | ReNews Pakistan

The Ministry of Finance and the International Monetary Fund (IMF) have launched a high level, two day workshop to discuss modernising Pakistan’s tax system, improving its effectiveness and transparency, and supporting sustainable economic growth.

Finance Minister Muhammad Aurangzeb delivered opening remarks alongside Jihad Azour, director of the IMF’s Middle East and Central Asia Department, and Rodrigo Valdés, director of its Fiscal Affairs Department.

Senior government officials, representatives of the IMF and World Bank, international tax experts, academics and private-sector leaders are participating. Discussions focus on reform priorities and ways to strengthen revenue collection while encouraging investment and economic activity.

Key topics include harmonising sales taxation across the federal and provincial governments, developing a simpler and more neutral income tax system, fiscal federalism and provincial tax revenues. Participants are examining these issues as part of efforts to develop a broad based, fair and transparent tax framework.

A dedicated session on tax administration and digitalisation explored ways to improve compliance with tax laws and strengthen taxpayer confidence. Participants also examined the role of digital tools in modernising tax administration.

The workshop is considering how reforms can raise revenues while supporting business expansion, productivity and investment. Aligning tax policy with the requirements of sustained economic growth is a central theme of the discussions.

A high-level panel discussion will conclude the workshop, bringing together proposals presented during the sessions and considering priority actions for the next phase of reform. Participants will also examine arrangements for continued coordination and cooperation among the institutions and stakeholders involved.