Only 5% of Pakistanis Control Wealth, Reveals FBR Chief in Stark Tax Briefing
ISLAMABAD — The Senate Standing Committee on Finance and Revenue convened for a second consecutive day to continue its in-depth review of the Finance Bill 2025–26, with a strong focus on tax justice, wealth inequality, and enhanced enforcement measures by the Federal Board of Revenue (FBR). The session, chaired by Senator Saleem Mandviwalla, featured high-level participation from lawmakers and government officials and raised significant concerns over the concentration of wealth in Pakistan and the sweeping powers proposed for tax authorities.
Held at Parliament House, the session included Federal Minister for Finance and Revenue Muhammad Aurangzeb, Chairman FBR Rashid Mahmood Langrial, Secretary Commerce Jawad Paul, and prominent senators including Farooq Hamid Naek, Syed Shibli Faraz, Anusha Rehman, Ahmed Khan, Mohammad Abdul Qadir, Danesh Kumar, and Masroor Ahsab.
FBR Chairman Rashid Mahmood Langrial provided a striking overview of the country’s economic divide. “Only five percent of Pakistan’s population controls the majority of the country’s wealth,” Langrial said. “Ninety-five percent of Pakistanis cannot afford to pay taxes.” He highlighted that the average annual income of the top one percent of households stands at Rs. 10 million and urged a shift from expanding the tax net to directly taxing the wealthy.
Additional data presented underscored the broader structural issues: 6 million registered tax filers in a country with a population exceeding 240 million, 132 million people under the age of 18 or above retirement age, and 67 million unemployed citizens — many of whom are educated women. Langrial noted that even amidst rising temperatures, 95% of citizens do not own air conditioning, reflecting deep-rooted socio-economic disparities.
As part of the clause-by-clause review of the Customs Act, 1969, the committee discussed the integration of a digital Cargo Tracking System (CTS). This technological measure is aimed at monitoring the movement of imported, exported, and transit cargo to identify non-duty paid or smuggled goods, while facilitating legitimate trade flows.
Another amendment focused on customs duties related to courier shipments. The proposal seeks to revise the de minimis threshold for duty exemption on imported parcels sent via post or courier from Rs. 15,000 to Rs. 500. The objective is to prevent misuse of the exemption for personal parcels under the guise of low-value shipments.
A contentious topic emerged around a proposed provision granting FBR officers the authority to issue arrest and money laundering notices. Committee Chairman Senator Saleem Mandviwalla expressed serious reservations about the potential for abuse. “Even a minor FBR officer issuing such a notice could disrupt businesses and create unnecessary panic,” he warned. “Receiving a money laundering notice often leads to immediate business shutdowns. Such authority should only be exercised with the explicit approval of the Chairman FBR and the Finance Minister.”
The committee’s deliberations reflected growing scrutiny over the scope and implementation of tax reforms, particularly in light of public concern over economic inequality and administrative overreach. The review of the Finance Bill 2025–26 will continue in subsequent sessions.
