New Customs and IRS committees to monitor operational performance, audit quality and compliance risks through quarterly reviews
The Federal Board of Revenue (FBR) has constituted Performance Review & Compliance Risk Management (PRCRM) Committees for Customs and Inland Revenue Service (IRS) operations with immediate effect.
The committees will provide institutionalised, headquarters-level oversight of operational performance and compliance risk management within their respective domains.
PRCRM Customs committee
The PRCRM (Customs) will be chaired by Member (Operations), Customs, with Member (Audit), Customs and Member (Legal), Customs serving as members.
The Director General, Post Clearance Audit, will serve as a co-opted member, while Chief (Customs Operations) will hold the committee’s secretariat.
PRCRM IRS committee
The PRCRM (IRS) will be chaired by Member (IR-Operations), with Member (Audit/CRM) and Member (Organisational Audit) as members.
The Director General (Internal Audit) will serve as a co-opted member, while Chief (IR-Operations) will act as the secretariat.
The chairs will convene quarterly review sessions, direct the analytical agenda and present findings to the Board-in-Council.
Members responsible for audit will assess audit quality, enforcement and alignment with compliance risk management (CRM). The Customs legal member will ensure recommendations comply with applicable law, while the IRS audit/CRM member will oversee revenue-accounting accuracy, formation-level recovery and refund-processing integrity.
The co-opted Director General (Internal Audit) will provide independent assurance findings and integrity observations.
Committees to monitor performance and compliance
The committees will review case-processing timelines across formations and identify persistent deviations from service standards. They will also analyse consistency in enforcement practices across field offices.
Another key responsibility will be monitoring how CRM-identified risks translate into enforcement action. The committees will assess the ratio of risk-based to non-risk-based audit selections and identify systemic enforcement bottlenecks.
They will also assess audit quality against applicable risk parameters and audit manuals, review the integration of audit findings into management information systems and evaluate post-audit follow-up and recovery performance.
The committees will recommend corrective measures involving procedures, workflows and data systems. They will also track the implementation of previous recommendations and refer persistent non-performers to the Board-in-Council.
Quarterly reports and accountability
Each committee will conduct quarterly reviews and submit a formal Quarterly Report to the Board-in-Council, with the chair presenting findings and recommendations in person.
Reports will include performance summaries by formation and function, CRM-to-enforcement translation rates, audit-selection analysis, audit-quality assessments, systemic gaps and root-cause analysis.
The secretariat will maintain a rolling implementation tracker covering each recommendation, the responsible formation or directorate, target timelines and progress at subsequent quarterly reviews.
FBR will share summaries of committee reports with the Ministry of Finance as part of its regular governance reporting. The summaries will also be made available to the IMF upon request.
Key deliverables
The committees will oversee the conceptualisation and digitisation of performance-monitoring processes, including standardised frameworks for Customs and IRS formations and digitised workflows for real-time data collection and automated deviation flagging.
They will also establish a graduated corrective-action framework involving nudges, formal warnings, mandatory training and disciplinary referrals based on the severity and persistence of performance gaps.
A formation-by-formation Performance Evaluation Report will be produced each quarter, covering audit quality, CRM-to-enforcement translation rates, refund-processing timelines and compliance with operational standards.
Formal Quarterly Reports must be submitted to the Board-in-Council within 45 days of each quarter close.
The notification was issued with the approval of the Competent Authority.