ISLAMABAD – Prime Minister Shehbaz Sharif on Saturday said that the positive trends due to tariff reforms and the government’s steps to modernize and improve the Federal Board of Revenue (FBR) transparently were solid evidence of the correctness of the measures.
He was chairing the weekly review meeting on reforms in the country’s tax system. “The latest economic statistics are proving the government’s economic reforms are working, as a result of which the pace of economic growth is improving every day, evidence of which is also coming before the business community and the nation,” he added.
During the meeting, it was briefed that the tariff reforms carried out this year have not had any negative impact on revenue collection, rather, the collection of duties and taxes at the import level has increased by 25 percent.
This increase came despite a mere 3.6% increase in the volume of dutiable products, which also disproved fears that reducing tariffs would reduce revenue collection.
The participants were told that duty-free imports increased by 41.5%, which means that a large increase in imports has occurred in products that fall under the category of raw materials and intermediate goods. This can be considered a sign of significant improvement in the impact on productivity at the basic level.
The meeting was told that the ongoing economic reforms, including tariff reduction and improvement of the tax system were aimed at increasing manufacturing and exports, thereby making the environment more conducive for investment in the country.
The increase in imports of goods falling under the category of duty-free imports is a sign of the effectiveness of the government’s tariff rationalization measures, which are aimed at increasing the import of raw materials and secondary goods.
It was informed that the aim of tariff reforms was to reduce the cost of raw materials used in the manufacturing sector so that the volume of domestic exports could increase and competitiveness in the global market could be achieved. Latest data proves that this policy of the government has been successful. The results achieved from customs reforms also include the effects of the successful government strategy of making the FBR a modern, transparent and viable institution.
The prime minister directed to take administrative and institutional measures to prevent tax evasion and eliminate the shortcomings in the tax collection system in tobacco, tiles and other major sectors in a phased and effective manner.
He congratulated the entire finance team including the FBR and stressed that the pace of effective implementation of the reform process should be further accelerated so that Pakistan can get out of the vortex of economic difficulties and be able to truly meet the sustainable development goals.
Federal Minister for Finance Muhammad Aurangzeb, Federal Minister for Climate Change Dr. Musadik Malik, Federal Minister for Petroleum Ali Pervaiz Malik, Minister of State for Finance Azhar Bilal Kayani, chief secretaries of all provinces, Chairman FBR and other relevant government officials attended the meeting.
Meanwhile, Prime Minister Shehbaz Sharif said while formulating government policy, the elimination of social and religious friction and the inclusion of all classes, especially minorities, in the national mainstream are among the priorities of the government.
In a message on the International Day for Tolerance, he said, “The government is committed to the strategy of interfaith harmony and religious tolerance. In this context, among the practical steps taken, the Minorities Rights Bill 2025 has also been passed by the Parliament, which will definitely help in protecting the rights of minorities and promoting interfaith harmony and its effective implementation.”
He said, “Today, on the International Day for Tolerance, Pakistan joins the voice of the world community in highlighting this characteristic of human character.”
“Pakistan and the international community are committed to the common human characteristic of compassion, peaceful coexistence, respect and tolerance. This day highlights the importance of this characteristic of human character that tolerance is not a sign of weakness but a manifestation of wisdom, patience, humanity and strength of character,” he continued.
He said the basic spirit of Pakistan’s constitution, laws and international human rights conventions was against terrorism and extremism and carries a message of patience and tolerance.
“Tolerance and patience are not only social virtues but are also in line with Islamic teachings. Islamic teachings encourage us to tolerate different beliefs, religions, civilizations and treat them with respect and dignity.
The life of the Prophet Muhammad (PBUH) was a practical example of Islamic teachings of tolerance and patience,” he added.
He said Islamic principles and all international laws, while prioritizing the importance of basic human values, encourage equal rights for all human beings regardless of color and race.
“Pakistan has a multifaceted culture, civilization, traditions and different languages with all their splendor,” he said adding, “This is the beauty of Pakistan as a nation. The Constitution of Pakistan also provides equality and protection to every citizen and it is the duty of every citizen to promote interfaith harmony and the values of tolerance.”
