Islamabad: Prime Minister Shehbaz Sharif has directed authorities to expedite the resolution of pending tax cases, aiming to recover at least Rs500 billion by June.
Speaking at a cabinet meeting, the prime minister stressed the urgency of settling tax disputes involving nearly Rs4 trillion. He cited the recent Sindh High Court ruling in the windfall income tax case, which allowed the government to recover Rs23 billion, as a positive step toward addressing the backlog.
Attorney General Mansoor Awan informed the cabinet that outdated Federal Board of Revenue (FBR) legal procedures had contributed to delays in tax litigation. Following the prime minister’s intervention, revisions have been made to streamline the process. However, the government has provided a conservative estimate of Rs300 billion in recoveries to the International Monetary Fund (IMF).
Meanwhile, the IMF team has been in discussions with the FBR regarding tax collection performance, amid concerns over a revenue shortfall of Rs606 billion in the past eight months. If corrective measures are not implemented, this deficit could rise to nearly Rs1 trillion by June.
To bridge the gap, the government plans to recover Rs300 billion from tax disputes and an additional Rs100 billion by adjusting tax rates on beverages and cigarettes.
Last month, Prime Minister Shehbaz urged Chief Justice of Pakistan Yahya Afridi to prioritize the resolution of long-standing tax cases. In response, the Chief Justice sought government recommendations to enhance judicial efficiency in handling tax-related litigation.
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