Prime Minister Shehbaz Sharif has said that massive corruption continues to exist within the Federal Board of Revenue (FBR), warning that collusion and irregularities are costing Pakistan trillions of rupees every year.
Addressing governance reforms, the prime minister said corruption within the FBR is even more damaging than collusion, saying that trillions of rupees that should be deposited into the national treasury instead end up in private pockets. He said the resulting revenue losses weaken the economy, increase financial pressures and force Pakistan to borrow more to repay existing debts.
PM Shehbaz said that only a transparent governance system can resolve the country’s long-standing economic challenges, adding that improved coordination and reforms enabled the FBR to collect an additional Rs800 billion in taxes during the last fiscal year.
His remarks come as the Finance Ministry and the FBR continue an extensive anti-corruption campaign to curb tax leakages and improve revenue collection through technology-driven reforms.
According to official figures, the FBR has been working to plug tax leakages, particularly in sales tax, for the past two and a half years by using artificial intelligence and digital monitoring systems. The drive has helped recover nearly Rs60 billion from the sugar and cement sectors alone.
The ministry said FBR revenues have increased by around 40 per cent over the past two years, surpassing Rs13 trillion during the previous fiscal year.
As part of the ongoing accountability drive, 243 senior officers of questionable repute have been suspended or sidelined, with authorities describing the action as part of a broader effort to eliminate corruption within the country’s tax administration.
The prime minister also cited the examples of Japan and Germany, saying both nations rebuilt their economies through hard work, discipline and transparent governance despite severe economic hardships. He added that the federal government’s model of transparent governance would gradually be implemented across the provinces.
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