Billions in Tax Revenue Stuck in Over 108,000 Pending Cases, Affecting National Economy
Billions of rupees in tax revenue are currently stuck in over 108,000 cases pending in courts across Pakistan, with a total of 4,457 billion rupees trapped in the country’s highest courts. This backlog is severely impacting the collection of the country’s income and its economic stability.
This revelation came after a Supreme Court meeting held on November 7, 2024, under the chairmanship of Chief Justice of Pakistan, Yahya Afridi. Following the meeting, a committee was established to make recommendations on how to address the issue.
Officials from the Federal Board of Revenue (FBR) and the Ministry of Finance presented the details of the growing backlog of tax-related cases. According to government sources, around 6,000 tax-related cases are currently pending in the Supreme Court of Pakistan, involving potential recoveries worth billions of rupees. In addition, nearly 2,000 cases are pending in various tribunals and courts, where stay orders have caused delays in their resolution for years. The failure to resolve these cases in a timely manner has not only created legal obstacles but has also hindered tax collection efforts, leading to significant financial losses for the national treasury.
In response to this alarming situation, the Supreme Court established a special committee to examine the matter, identify obstacles, and propose solutions for the swift resolution of tax-related disputes. The committee was tasked with assessing the reasons behind the increasing number of tax revenue-related cases and suggesting institutional mechanisms for their expedited resolution.
The committee consists of Supreme Court Registrar Saleem Khan, Asim Zulfiqar, Sher Shah Khan, Director-General Law of FBR Ishtiaq Ahmed Khan, and tax expert Imtiaz Ahmed Khan, who also serves as the coordinator of the committee. The committee has been tasked with reviewing the reasons behind the growing number of revenue-related cases and offering institutional recommendations to expedite their resolution.
As part of its efforts, the committee has consulted with key stakeholders, including representatives from the FBR, the Supreme Court Bar, the Punjab Tax Bar Association, the Federation of Pakistan Chambers of Commerce and Industry, and other business and industry representatives.
During the meeting, officials emphasized that the root cause of the backlog in these cases is the lack of designated revenue benches in the higher judiciary.
