Pakistan’s tax authority has crossed its revised revenue target for the last fiscal year, giving the government fresh confidence as it pushes ahead with plans to modernise the country’s tax system and improve services for taxpayers.
Finance Minister Muhammad Aurangzeb, while addressing senior officials at the Federal Board of Revenue (FBR) headquarters on Wednesday, said collecting taxes alone should no longer define a modern tax administration. He said the real goal was to create a system that is transparent, easy to use and trusted by the public.
The FBR collected Rs13.010 trillion during FY26, exceeding its revised target of Rs12.983 trillion. The figure also marked an 11 percent increase from the Rs11.745 trillion collected in the previous fiscal year.
Congratulating FBR officials on reaching the target, Aurangzeb said the achievement reflected the government’s wider economic reform efforts over the past two and a half years. He noted that Pakistan’s revenue collection had nearly doubled during this period, helping the country record its lowest fiscal deficit and its highest primary surplus to date, alongside stronger external sector indicators.
The finance minister said the next stage of reforms would focus on making tax compliance simpler for individuals and businesses. He said technology, automation and digital services would reduce unnecessary delays, limit human discretion and help curb corruption.
According to Aurangzeb, the government’s newly approved operating model for the FBR is expected to speed up institutional reforms by improving its people, processes and technology. The plan also includes wider use of artificial intelligence and modern digital systems to make tax administration more efficient.
He also thanked parliamentarians for backing the legal changes needed to move the reform programme forward and reaffirmed the government’s commitment to turning the FBR into one of Pakistan’s strongest public institutions.
The minister also pointed to progress in tax refunds, saying the FBR processed and paid Rs599 billion during FY26. Of that amount, Rs13.5 billion was released on the final day of the fiscal year, which he described as a major step towards supporting businesses and exporters.
FBR Chairman Rashid Mahmood Langrial, who joined the meeting virtually, praised the close coordination between the Finance Division and the tax authority throughout the budget process. He highlighted cooperation during discussions with the IMF, provincial governments, coalition partners, parliamentary committees and other stakeholders.
Langrial also outlined the board’s ongoing modernisation programme, which includes upgrades to tax and customs systems, greater use of artificial intelligence and extensive staff training. He said these reforms would improve taxpayer services, strengthen compliance and help build a more modern and efficient tax administration.
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