ISLAMABAD: Pakistan’s unresolved tax litigation has climbed to more than Rs5.4 trillion, marking a sharp rise over the past two years, according to official sources. The total volume of disputed cases pending in courts and appellate tribunals has increased from Rs3.76 trillion in 2024 to Rs5.457 trillion — an increase of over 30 percent.
Sources say the growing backlog underscores the challenges faced by the Federal Board of Revenue in recovering large sums tied up in legal proceedings.
FBR Chairman Rashid Mahmood Langrial recently briefed Prime Minister Shehbaz Sharif on the escalating number of pending cases. The prime minister expressed dissatisfaction and directed authorities to formulate a strategy to accelerate hearings and resolve the backlog.
A breakdown of cases shows that the Supreme Court of Pakistan is handling 3,277 tax cases involving over Rs169 billion. The Islamabad High Court has 1,979 cases worth Rs482 billion pending. The Lahore High Court bears the heaviest burden, with around 7,490 cases exceeding Rs963 billion — up significantly from 4,670 cases worth Rs180 billion in 2024.
Meanwhile, the Peshawar High Court has 241 pending cases worth Rs27 billion, while the Balochistan High Court is dealing with 37 cases involving Rs6 billion. The Sindh High Court has 2,081 cases worth Rs480 billion awaiting decisions. In total, courts are currently handling 11,938 tax cases with disputed amounts nearing Rs1.96 trillion, compared to Rs750 billion two years ago.
At the tribunal level, the backlog is even larger. Cases pending before Appellate Tribunals Inland Revenue exceed 21,767, involving more than Rs3.33 trillion. By the end of 2022, these tribunals had 63,655 cases worth Rs1.46 trillion, which rose to Rs2.235 trillion in 2024 and has continued to grow.
The International Monetary Fund has also raised concerns about the mounting tax disputes and urged Pakistan to expedite their resolution. Ongoing discussions between the IMF and FBR include a proposed tax collection target of Rs15.6 trillion for the upcoming fiscal year, though a final agreement has yet to be reached. Officials say the IMF has stressed the importance of clearing the litigation backlog, and the FBR is expected to present progress updates in upcoming talks.
