FBR Revenue Soars in 2025 — Collection Jumps Eight Times Due to Strong Enforcement and Reforms
ISLAMABAD, 2025 — The Federal Board of Revenue said the eightfold increase in revenue collection for the fiscal year 2024–2025 was one of the largest increases in recent tax history. Officials attribute this huge leap to increased enforcement, better governance, and notable developments in transparency and digital monitoring.
According to FBR’s latest report, the authority collected Rs. 874 billion through enforcement during FY2024–25 — a huge rise compared to only Rs. 105 billion recovered in the previous year.
This shows how seriously the government has been working to improve compliance and tighten the tax system.
Where Did the Revenue Increase Come From?
The rise in revenue was powered by several targeted initiatives. Here are the key contributors:
| Sector / Initiative | Recovery / Growth | Period |
| Sugar sector (real-time monitoring) | Rs. 25 billion | Jul–Dec FY2024–25 |
| Cement sector (real-time monitoring) | Rs. 12.8 billion | Jul–Jun FY2024–25 |
| Legal settlements & dispute resolution | Rs. 255 billion | FY2024–25 |
| Increase in admitted tax liability | Rs. 218B (previously Rs. 160B) | FY2024–25 |
| Customs duty/taxes per GD – Dry Port Lahore East | 40% YoY increase | Apr–Jun FY2024–25 |
| Revenue from smuggling-prone items | Rs. 321B (up Rs. 53B) | FY2024–25 |
Major Reforms That Boosted Revenue
- Real-time monitoring systems
FBR worked on enhancing this through digital monitoring, particularly in key industries such as sugar and cement, tracking their production and sales in far greater detail. This had reduced the underreporting considerably, increased transparency, and resulted in an additional revenue of billions. - Growth in the POS or Point of Sale Integration
FBR’s drive to integrate the point-of-sale crossed the 40,000 installations mark, thereby covering nearly 38 percent of the Tier-1 retailers.
This extended the documentation in large retail markets and ensured proper reporting of the sales tax. - Faceless Customs Assessments
The FBR initiated faceless Customs assessments in order to reduce corruption and human intervention.
It helped bring uniformity in decisions, improved transparency, and reduced discretionary powers. - Crackdown on Smuggling
The Customs Single Enforcement Entity reported an increase in revenue of almost 20% on goods that are usually smuggled.
This means improvement of border control, intelligence enhancement, and more stringent action against illegal trade. - Peer-Rated Evaluation System
To reward honest, high-performing officers, FBR introduced a peer-rated performance review system—a first-of-its-kind initiative aimed at promoting accountability within the institution.
What this means for Pakistan
These reforms have assisted in the following ways:
✔ Improve documentation
✔ Reduce tax leakages
✔ Promote transparency between sectors
Increase trust in the tax system
✔ Encourage voluntary compliance
Minimize corruption and manual discretion
Thus, with these improvements, FBR moves closer to a modern, automated, and data-driven tax ecosystem that the country has long needed.
Final Thoughts: This eight-fold rise in revenue for FY 2024–25 proves that, when technology, enforcement, and transparency work in tandem, the tax system in Pakistan can deliver decent results. Though formidable challenges remain, reforms unleashed in 2025 do point to the country steadily moving toward an increasingly compliant and digitally empowered tax framework. According to experts, if FBR remains on the course of reforms, then the country could increase its tax base manifold and reduce reliance on borrowing in the coming years.