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ISLAMABAD, Dec 08 (APP): Minister for Finance and Revenue Muhammad Aurangzeb on Monday informed the National Assembly that Pakistan recorded a 27 percent increase in federal revenue collection last fiscal year, driven by structural reforms, digital monitoring of key sectors, and stricter enforcement against tax evasion.
Responding to a Calling Attention Notices raised by Syed Hafeezuddin and Muhammad Jawed Hanif Khan regarding rampant tax evasion and the devastating condition of revenue collection, the minister said the Federal Board of Revenue (FBR) collected Rs11.7 trillion compared to Rs9.2 trillion in the previous fiscal year—an unprecedented increase of nearly Rs5 trillion.
He said that withholding tax grew by 28%, sales tax by 26%, federal excise duty by 33%, and customs duty by 16%, terming the overall performance “strong and structurally driven rather than one-off.”
Aurangzeb said Pakistan’s tax-to-GDP ratio had already improved from 8.5% to 10.3%, and expressed confidence that it would reach 11% this year, supported by automation and technology-led reforms monitored weekly by the Prime Minister.
The minister informed the House that enforcement efforts were now focused on widening and deepening the tax net.
He said nearly Rs 200 billion was collected from retailers and wholesalers this year, with around 400,000 non-null returns filed—“a real compliance gain.”
He said digital production monitoring had already begun in the sugar and cement sectors, resulting in Rs7 billion and Rs10 billion additional collections respectively between July–November.
“These reforms will continue. Technology is the equalizer,” he said, urging Syed Hafeezuddin and other members to share intelligence on suspected evasion so enforcement could be further tightened.
Aurangzeb also acknowledged a point raised earlier by Minister for National Food Security Rana Tanveer Hussain regarding access to finance in agriculture.
He highlighted that the government had launched a collateral-free loan programme for farmers holding less than five acres and engaged in subsistence-level livestock farming.
He said the first-loss guarantee and subsidy would be provided by the Government of Pakistan through the State Bank, and the scheme had already been operationalised.
Responding to various supplementary questions, Aurangzeb said he had already clarified Pakistan’s position on the IMF Governance Diagnostic Report on the floor of the Senate, but was reiterating it for the Lower House.
He said the report was based on input from 100+ meetings involving 30+ departments, and that IMF had explicitly acknowledged Pakistan’s progress in several areas—including fiscal performance, primary surplus, inflation moderation, reserves building, State Bank strengthening, FATF exit, digitalisation reforms, and alternative dispute resolution mechanisms.
Aurangzeb emphasised that the report’s 15 recommendations were technical in nature and not a judgment on any government or administration.
He said that Pakistan was required to submit its action plan by 31 December, and that the plan would be made public and shared with the Standing Committee on Finance.