ISLAMABAD: Pakistan’s unresolved tax litigation has ballooned to over Rs5.4 trillion, reflecting a steep rise in disputed revenue stuck in courts and tribunals, according to official sources. The surge highlights mounting challenges for tax authorities as billions remain tied up in prolonged legal battles.
Data indicates that the total value of contested tax cases has jumped from Rs3.76 trillion in 2024 to approximately Rs5.457 trillion in 2026—an increase of more than 30% in just two years. The growing backlog underscores systemic inefficiencies in dispute resolution and poses a significant hurdle to revenue collection efforts.
Officials say the expanding volume of pending cases has become a major concern for the Federal Board of Revenue, which is struggling to unlock funds entangled in litigation. The issue was recently brought to the attention of Prime Minister Shehbaz Sharif during a high-level briefing by FBR Chairman Rashid Mahmood Langrial.
During the meeting, the prime minister reportedly expressed dissatisfaction over the pace of case disposal and directed authorities to devise a comprehensive strategy aimed at accelerating hearings and clearing the backlog.
A closer look at the figures reveals a heavy burden on the superior judiciary. The Supreme Court of Pakistan is currently hearing 3,277 tax-related cases involving more than Rs169 billion. At the high court level, the Lahore High Court carries the largest caseload, with around 7,490 cases exceeding Rs963 billion—an enormous jump from 4,670 cases worth Rs180 billion in 2024.
The Islamabad High Court has 1,979 pending cases valued at Rs482 billion, while the Sindh High Court is handling 2,081 cases involving Rs480 billion. Meanwhile, the Peshawar High Court is dealing with 241 cases worth Rs27 billion, and the Balochistan High Court has 37 cases involving Rs6 billion.
In total, courts across the country are currently adjudicating nearly 11,938 tax cases, with disputed amounts approaching Rs1.96 trillion. This represents a sharp increase from around Rs750 billion two years ago, indicating a rapid accumulation of unresolved disputes.
At the tribunal level, the situation appears even more strained. The Appellate Tribunals Inland Revenue are burdened with over 21,767 pending cases involving more than Rs3.33 trillion. The growth trajectory has been steep, with disputed amounts rising from Rs1.46 trillion in 2022 to Rs2.235 trillion in 2024, and continuing upward since then.
The swelling backlog has also drawn attention from the International Monetary Fund, which is engaged in ongoing economic discussions with Pakistan. The Fund has reportedly urged authorities to expedite the resolution of tax disputes as part of broader fiscal reforms.
Negotiations between the IMF and Pakistani officials include a proposed tax revenue target of Rs15.6 trillion for the upcoming fiscal year. While no final agreement has been reached, officials say clearing litigation bottlenecks remains a key priority in the talks.
