Pakistan’s FBR to Freeze Bank Accounts of Non-Filers in Tax Crackdown

By Farhan Ali • June 23, 2025

In an aggressive step to address tax evasion and broaden the documentation of Pakistan’s economy, the Federal Board of Revenue (FBR) will begin freezing the bank accounts of non-filers—individuals or businesses who have not submitted their income tax returns.

The announcement came from Finance Minister Muhammad Aurangzeb Langrial as part of the country’s post-budget compliance reforms. The move is set to go live in phases, beginning with account audits and immediate freezes for repeat defaulters.

Background
Non-filers in Pakistan represent a major gap in the government’s ability to collect revenue. While just over 5 million Pakistanis are registered tax filers, millions more operate in the informal economy without ever submitting returns. This discrepancy has contributed to chronic fiscal deficits, inflationary pressures, and continued IMF scrutiny.

How It Works

• FBR will coordinate with NADRA and local banks to identify account holders not listed as filers.
  
• Accounts may be frozen with or without prior warning, especially for repeated or high-value non-compliance.
  
• Recovery actions may include deduction of taxes owed, account holds, or restricted withdrawals.
  
• Individuals can avoid freezes by filing their return or rectifying their status via the Iris tax portal.
  

Public Response
The move has triggered a mix of fear, frustration, and satire online. Many small account holders expressed concern about losing access to modest savings. While the policy aims to target high-income evaders, its blanket nature may inadvertently affect lower-income users or unregistered accounts. Civil society groups are urging FBR to issue clearer guidelines and implement safeguards for low-balance citizens.

Why It Matters
This is one of the most direct enforcement tools ever deployed by the FBR. With Pakistan facing mounting debt and IMF-backed reforms, improving tax collection has become critical. The freeze order adds weight to the government’s rhetoric around accountability—but it must be balanced with fair implementation to avoid eroding public trust.

Conclusion
As Pakistan’s tax net tightens, non-filers now face a tangible financial consequence: frozen funds. While this measure is expected to increase filings in the short term, long-term effectiveness will depend on transparency, legal protections, and education around tax responsibilities.

Additional References:

• Runway Pakistan (@runway.pakistan)
  
• Ministry of Finance Pakistan (@financegovpk)
  
• Dawn (@dawn_today)
  
• The News International (@thenews_intl)
  
• Express Tribune (@tribune.pk)
  
• Samaa TV & Geo News reporting on public response