In a decisive move to expand Pakistan’s tax base, the Federal Board of Revenue (FBR) is set to roll out geo-tagged surveys across Karachi, Lahore, and Islamabad. The initiative aims to identify retailers and wholesalers who are either operating without a Point of Sale (POS) system or underreporting transactions — a move driven by mounting pressure from the International Monetary Fund (IMF).
The IMF has upheld its Rs. 50 billion enforcement benchmark and urged the FBR to fast-track compliance measures without waiting for the fiscal year 2025-26 budget announcement. As a result, the FBR is dispatching on-ground survey teams equipped with vehicles to commercial hubs and major shopping malls.
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According to FBR officials, between 50,000 and 100,000 retail outlets remain outside the formal POS network. The upcoming surveys will help locate these non-compliant businesses and push them toward digital integration.
A penalty framework is also under development to fine retailers issuing receipts outside the POS system. Similar enforcement actions have already taken effect in Islamabad’s hospitality sector, targeting hotels and restaurants.
Finance Minister Muhammad Aurangzeb recently reported that declared tax contributions from traders surged to Rs. 413 billion this fiscal year, a significant jump from Rs. 187 billion last year. However, FBR clarified that a large portion of this amount involved tax adjustments rather than actual collections.
With the IMF revising Pakistan’s annual tax collection target from Rs. 12,970 billion to Rs. 12,332 billion, and the FBR having collected Rs. 8.43 trillion during July-March, authorities are racing against time to meet the revised benchmark by June 30, 2025.
The enforcement drive is part of a broader strategy to formalize the retail economy, improve documentation, and bolster revenue collection as Pakistan navigates a challenging fiscal landscape.
