PM targets tax evasion, doubles SME financing goal

Prime Minister Shehbaz Sharif has warned that businesses collecting taxes from consumers but keeping the money instead of depositing it with the government will not be entitled to any concessions. He stressed the need for stronger tax enforcement and comprehensive measures to ensure that the country collects its full tax potential.

The prime minister made these remarks while chairing a review meeting on reforms at the Federal Board of Revenue (FBR) in Islamabad on Tuesday. He directed the relevant authorities to take all necessary steps to improve tax collection, strengthen compliance and eliminate practices that deprive the national exchequer of its rightful revenue.

Shehbaz Sharif emphasised that businesses must fulfil their legal tax obligations and ensure that taxes collected from customers are deposited with the government. He made it clear that those who misuse the tax collection system for personal benefit should not expect preferential treatment or relief.

The prime minister also highlighted the importance of technology in improving tax administration. He said production monitoring was being made more effective through cameras under a faceless monitoring system. The initiative aims to reduce direct human interaction, improve transparency and help authorities monitor industrial production more accurately.

The government is pursuing FBR reforms to strengthen revenue collection and address weaknesses in the tax system. The prime minister directed officials to ensure that the reforms produce practical results and help the government achieve its revenue targets.

Separately, Shehbaz Sharif chaired a meeting concerning the Small and Medium Enterprises Development Authority (SMEDA), during which he directed officials to double the financing target for small and medium-sized enterprises (SMEs) by 2028.

Under the revised plan, loans for small and medium-sized businesses are to be increased from Rs1.1 trillion to Rs2.2 trillion. The initiative is aimed at improving access to financing, supporting business expansion and encouraging entrepreneurship across the country.

The prime minister instructed SMEDA to develop a comprehensive strategy to educate business owners about the procedures and requirements for obtaining loans. He stressed that entrepreneurs should have clear information about available financing opportunities and the process for accessing them.

Improved access to credit is expected to help small and medium-sized businesses invest in their operations, expand production and create employment opportunities. SMEs play an important role in economic activity, but many businesses face difficulties securing financing because of complicated procedures and limited awareness of available schemes.

Through the proposed measures, the government aims to improve tax compliance while supporting the growth of smaller businesses. The initiatives reflect a dual focus on strengthening public revenue and expanding access to financing for enterprises that contribute to economic development and job creation.