Islamabad | ReNews Pakistan

The Federal Board of Revenue (FBR) needs complete operational autonomy and protection from political interference to improve Pakistan's tax collection system, senior government sources and independent tax experts have said following Prime Minister Shehbaz Sharif's latest directives to restructure and reform the country's principal revenue authority.

The renewed reform initiative has raised questions about whether changes to the FBR's organisational structure alone can improve revenue collection without addressing political influence, administrative weaknesses and unequal enforcement of tax laws.

Senior official sources told The News that Pakistan had introduced various reforms in its taxation system over the past three decades, accompanied by several comprehensive studies and restructuring proposals.

As part of these efforts, the Central Board of Revenue (CBR) was renamed the Federal Board of Revenue, while the tax administration was reorganised into two principal service groups.

The Inland Revenue Service (IRS) was established by bringing together income tax, sales tax and federal excise administration, while Customs continued as a separate service group within the tax machinery.

A new operating model was subsequently introduced through parliamentary legislation, alongside a transformation plan intended to improve efficiency and strengthen revenue administration.

However, official sources maintained that successive restructuring initiatives had failed to deliver the anticipated improvements in institutional performance.

A few years ago, FBR officials were assessed and placed in A, B, C and D performance categories. Certain officers were assigned lower grades on the basis of intelligence-based assessments, while others were designated officers on special duty (OSDs).

According to the sources, some of those officers continue to serve in OSD positions.

The government also introduced a transformation programme supported by loans worth millions of dollars from the World Bank and the Asian Development Bank. Despite these interventions, the revenue authority's overall performance reportedly remained below expectations.

The latest restructuring discussions followed a high-level meeting at the Prime Minister's Office last week, during which a proposal to abolish the existing FBR and establish a new national tax collection agency was considered.

The proposal has prompted debate within the revenue administration over the future institutional structure, allocation of responsibilities and administrative authority.

The Prime Minister's Office has directed the FBR to deliver a comprehensive presentation on October 19, 2026, outlining proposed human resource reforms and options for restructuring and revamping the organisation.

The revenue authority has also been asked to brief the meeting on taxation and revenue issues relating to the tobacco sector.

Meanwhile, the FBR continues to face difficulties in generating the expected revenue from domestic sales tax, intensifying scrutiny of its enforcement capabilities and overall effectiveness.

Independent tax experts have questioned whether the authority can achieve demanding revenue targets while certain influential sectors and individuals remain beyond the effective reach of the tax system.

They argue that assigning ambitious collection responsibilities to the FBR without ensuring consistent enforcement across all taxable sectors undermines the effectiveness of revenue administration.

Experts have therefore emphasised that meaningful reform requires greater institutional independence, protection from politically motivated interference and legally secured tenure for the organisation's top leadership.

According to their assessment, frequent administrative changes and external influence over operational decisions can weaken institutional continuity and reduce the effectiveness of tax enforcement.

One proposal under discussion involves separating the Inland Revenue Service and Customs into independent organisations with distinct administrative structures.

However, some independent tax experts have expressed reservations about the proposal, arguing that establishing separate authorities may not necessarily improve revenue collection.

Islamabad | ReNews Pakistan

Nearly 4.5 million international visitor arrivals were recorded in Pakistan during 2024 and 2025, according to figures presented in the National Assembly, with Afghanistan emerging as the largest source country, followed by the United Kingdom and the United States.

The figures showed that approximately 2.183 million international visitors arrived in 2024, while 2.29 million entered the country in 2025, bringing the combined total to around 4.473 million over the two years.

The information was presented during the question hour in response to a question by Pakistan Peoples Party lawmaker Dr Nafisa Shah. Parliamentary Secretary Kiran Imran Dar informed the House of the country wise figures provided by the Ministry of Inter-Provincial Coordination.

According to the statistics, arrivals from Afghanistan stood at 641,199 in 2024 and 575,674 in 2025, bringing the two-year total to 1,216,873.

The United Kingdom remained the second largest source of visitors, with 503,409 arrivals in 2024 and 514,412 in 2025, taking the combined figure to 1,017,821.

The United States accounted for 261,282 visitors in 2024 and 248,665 in 2025.

Arrivals from Iran increased from 106,835 in 2024 to 152,885 in 2025, while Canada contributed 116,529 and 117,600 visitors during the respective years.

The figures also showed that 74,093 visitors arrived from China in 2024, compared with 85,575 in 2025. Australian arrivals stood at 59,154 and 58,578, respectively.

Pakistan's major tourism attractions include the mountain destinations of Hunza, Skardu, Deosai National Park, Attabad Lake, Khunjerab Pass, Fairy Meadows and Astore in Gilgit-Baltistan.

Separate statistics compiled by the Gilgit Baltistan Tourism Department recorded 302,384 domestic tourist visits to Skardu district and 233,070 to Hunza district during 2024, illustrating the significance of these destinations for domestic tourism.

Other established tourist destinations include Swat, Malam Jabba, Kalam, Naran, Kaghan and Chitral in northern Pakistan, alongside Murree, Taxila and Lahore's historical attractions in Punjab.

Sindh offers heritage and coastal destinations, including Mohenjo daro, Makli and Karachi's beaches, while Islamabad attracts visitors to the Margalla Hills and Faisal Mosque.

Religious tourism is another important segment, with Kartarpur Sahib, Nankana Sahib and the Buddhist archaeological sites of Taxila attracting international interest.

However, the country wise arrival statistics presented in the National Assembly do not establish how many visitors travelled specifically for leisure tourism, as opposed to family visits, business, religious purposes or other forms of travel.

Islamabad | ReNews Pakistan

Pakistan is seeking to position itself as a major global destination for critical minerals, aiming to transform its estimated $8 trillion mineral wealth into a substantial source of foreign investment, export earnings and industrial development as international demand for strategic raw materials continues to increase.

According to the Institute of Cost and Management Accountants of Pakistan (ICMA), the country has 92 identified minerals, of which 52 are currently being extracted commercially. Pakistan's mineral-bearing areas extend across approximately 600,000 square kilometres, containing resources including copper, gold, lithium, cobalt, chromite, rare earth elements, marble, granite, coal and gypsum.

Despite this extensive resource base, the mining sector has historically contributed less than 3 per cent to Pakistan's gross domestic product (GDP), indicating a significant gap between the country's geological potential and its commercial utilisation.

ICMA estimates suggest that stronger governance, improved security, modern technology, infrastructure development and increased investment could help raise annual mineral exports from approximately $3 billion to $8 billion.

Under favourable economic conditions and broader structural reforms, overall GDP growth could potentially increase from around 3 per cent to 6 per cent. However, these figures represent conditional economic projections rather than guaranteed outcomes or officially achieved targets.

Among Pakistan's major mineral development initiatives, the Reko Diq copper and gold project in Balochistan's Chagai district remains particularly significant.

Considered one of the world's largest undeveloped copper and gold deposits, Reko Diq is expected to begin initial production by the end of 2028. The project could contribute substantially to mineral exports, foreign exchange earnings and employment once commercial operations commence.

The international market for critical minerals is expanding as countries invest in electric vehicles, battery manufacturing, renewable energy systems, electronics and advanced industrial technologies.

These developments have increased the strategic importance of copper, lithium, rare earth elements and other minerals essential for modern manufacturing and energy infrastructure.

Pakistan is seeking to capitalise on its mineral resources and geological position by attracting international mining companies, securing technical partnerships and expanding its participation in global mineral supply chains.

However, economic analysts maintain that exporting unprocessed minerals alone will not allow Pakistan to realise the full economic value of its geological resources.

Domestic mineral processing, refining, manufacturing and the production of higher-value industrial materials are considered essential for maximising export revenues and creating sustainable employment opportunities.

ICMA has highlighted several structural challenges affecting the mining industry, including fragmented governance, unclear regulatory frameworks, inadequate infrastructure, limited local processing facilities, security concerns and shortages of technically skilled workers.

The institute has also emphasised the need for transparent licensing procedures, reliable geological information, environmental safeguards, protection of local communities and consistent investment policies.

Addressing these challenges would help improve investor confidence and support the development of commercially viable mining projects.

Pakistan has also been pursuing mineral sector cooperation with international partners, including the United States, China and Türkiye, to attract capital, obtain advanced technology and develop exploration and processing capabilities.

Islamabad | ReNews Pakistan

The sealing of Aabpara's Akhbar Market in Islamabad has triggered strong protests from newspaper publishers, vendors and traders' organisations, with representatives of the print media industry condemning the action as a threat to press freedom and the public's right of access to information.

The closure disrupted newspaper distribution across the federal capital, while newspaper vendors and hawkers' organisations threatened to suspend supplies throughout Islamabad and Rawalpindi if the market was not reopened immediately.

According to available reports, the Directorate of Municipal Administration (DMA) of the Metropolitan Corporation Islamabad (MCI) sealed the newspaper distribution market on October 16, 2026.

The market has served for decades as a central distribution hub for newspapers in the federal capital, facilitating the collection, sorting and delivery of publications to residential neighbourhoods, government offices, commercial establishments and other institutions.

The closure affected the normal circulation of newspapers, leaving residents and several institutions without their regular supplies. Reports indicated that newspaper deliveries to the Prime Minister's Office, President's Office and diplomatic missions were also disrupted.

The All Pakistan Newspapers Society (APNS) strongly condemned the action. In a joint statement, APNS President Senator Sarmad Ali and Secretary General Muhammad Athar Qazi said the market had been sealed without prior notice or an explanation from the authorities.

They described the move as an unwarranted restriction on newspaper circulation that could undermine press freedom, disrupt timely access to information and cause substantial financial losses to publishers, distributors and newspaper vendors.

The APNS leadership urged the federal interior minister to intervene personally and direct the relevant authorities to immediately de-seal the market and restore its normal operations.

Meanwhile, a municipal administration official defended the closure, claiming that approximately Rs 10 million in outstanding charges were owed by the market.

However, representatives of the All Pakistan Akhbar Farosh Federation disputed the claim, maintaining that the market's rent had already been paid.

According to federation representatives, the disputed amount allegedly relates to an adjoining vacant plot that was neither allotted nor leased to the organisation. They called for clarification of the claimed liabilities and questioned the justification for sealing the newspaper distribution centre.

Federation Secretary General Tikka Khan and other representatives met Chief Commissioner Islamabad and CDA Chairman Sohail Ashraf to seek his intervention and demand the market's reopening.

Newspaper vendors and hawkers also staged demonstrations at Aabpara Chowk, demanding restoration of their business activities and the return of newspapers reportedly confiscated during the operation.

The protesters warned that they would organise sit-ins outside the National Press Club and CDA headquarters if their demands remained unresolved.

The Markazi Akhbar Faroshan Karachi also condemned the closure. In a joint statement, its President Muhammad Iqbal Noon and General Secretary Abdul Hameed Dada expressed concern that actions affecting newspaper distribution could further weaken an industry already facing financial pressures.

The controversy also reached the Senate, where Senator Sadia Abbasi raised concerns about the disruption of newspaper distribution in the federal capital.

Speaking during Senate proceedings, she called for an explanation from the interior ministry regarding the action against the market and its consequences for newspaper circulation.

Islamabad | ReNews Pakistan

The federal government is considering further restructuring the Federal Board of Revenue (FBR) or establishing a new national tax collection authority as part of efforts to improve revenue mobilisation, strengthen tax administration and expand Pakistan's tax base.

The proposal has emerged amid concerns over the performance of the existing revenue machinery despite successive reform initiatives and substantial investments in institutional modernisation.

However, no final decision has been made to abolish the FBR, establish a replacement organisation or transfer its existing powers to a new authority.

According to government officials, the idea of creating an entirely new national tax agency was raised during a high-level meeting last week. The discussions subsequently prompted consultations within the FBR, with Chairman Rashid Mahmood Langrial assigning senior officers to prepare proposals for Prime Minister Shehbaz Sharif.

Under instructions issued by the Prime Minister's Office on October 15, the FBR has been directed to present comprehensive proposals covering human resource reforms, institutional revamping and organisational restructuring by October 19, 2026.

The review is expected to examine the existing administrative structure, workforce management, revenue collection mechanisms and institutional arrangements required to improve the tax authority's performance.

Responding to questions about the possibility of establishing a new agency, an FBR spokesperson said that institutional reform remained an ongoing process involving the consideration of numerous proposals and options.

The spokesperson confirmed that the prime minister had sought comprehensive recommendations on human resource reforms and organisational restructuring.

The FBR also rejected reports suggesting that tax collection responsibilities would be handed over to a private company, describing such claims as baseless.

According to officials familiar with the discussions, one option under consideration involves establishing a National Tax Agency with a revised organisational structure and administrative framework.

Any decision to transfer the FBR's existing statutory powers to a new organisation would require amendments to the Federal Board of Revenue Act, 2007, and several federal tax laws.

Consequently, creating a replacement institution would involve legislative and administrative changes rather than a simple transfer of responsibilities through an executive order.

An official indicated that the preliminary discussions do not necessarily involve completely abolishing the FBR.

One possibility being explored is allowing officers who do not wish to transfer to the proposed new organisation to continue serving within the existing institution until retirement.

However, arrangements concerning staff transfers, employment conditions, institutional responsibilities and the final structure of any new authority have yet to be approved.

The government's consideration of further reforms comes against the background of continuing difficulties in achieving revenue collection targets, bringing additional taxpayers into the formal system and improving the tax-to-GDP ratio.

According to the figures cited in the latest reports, approximately 19 million individuals hold National Tax Numbers, while around 6.9 million income tax returns had been filed by the evening of October 15.

By comparison, approximately 8.5 million returns were submitted for the previous tax year. However, comparisons between the two periods must account for the extension of the current year's filing deadline.

The FBR maintains that its transformation initiatives have produced improvements in revenue performance.

According to the authority, tax collections increased from approximately Rs 9.2 trillion to Rs 13 trillion over two years.

However, questions remain about the extent to which the increase can be attributed specifically to administrative reforms rather than additional taxation measures, changes in tax rates and broader economic factors.