Advisor says NTOM will transform FBR into a data-driven, technology-enabled and transparent tax administration
MURREE: The Advisor to the Federal Minister for Finance and Revenue has unveiled the New Tax Operating Model (NTOM), describing it as a landmark reform that will modernise Pakistan’s tax administration through digitalisation, data analytics and risk-based compliance.
Addressing the four-day National Tax Seminar, jointly organised by the Pakistan Tax Bar Association (PTBA) and the Lahore Tax Bar Association (LTBA) in Murree, the advisor outlined Pakistan’s improving macroeconomic outlook, the government’s structural reform agenda, priorities of the FY2026-27 Budget, and the implementation of the NTOM.
He said Pakistan has made significant progress in restoring macroeconomic stability through prudent fiscal management and the implementation of key structural reforms.
According to the advisor, stronger fiscal discipline, improved debt management, rebuilding external financial buffers and renewed investor confidence have enabled the country to move beyond economic stabilisation towards sustainable, private sector-led growth.
Government highlights economic reforms
The advisor said the government’s reform programme has received international recognition through improved sovereign credit ratings, successful reviews under the International Monetary Fund (IMF) programme, renewed access to international capital markets, growing investor confidence and favourable assessments from global financial institutions.
He added that these developments reflect the government’s commitment to strengthening Pakistan’s economic fundamentals while creating a stable environment for investment and long-term growth.
FY2026-27 Budget focuses on growth
Highlighting the federal budget for FY2026-27, the advisor described it as a balanced, responsible and growth-oriented financial plan aimed at encouraging investment, boosting exports, supporting industrial development and creating employment opportunities while maintaining fiscal discipline.
He said the budget provides meaningful tax relief for the salaried class and introduces measures to improve business competitiveness and support exporters.
The budget also advances tariff reforms, promotes documentation of the economy and reinforces the government’s commitment to broadening the tax base instead of placing additional burdens on compliant taxpayers.
The advisor noted that the wider reform agenda also includes public debt management, privatisation, restructuring of state-owned enterprises (SOEs), pension reforms, energy sector reforms, Digital Pakistan initiatives, capital market development and improved access to finance.
He said these reforms are strengthening public institutions, improving governance, enhancing productivity and creating a more competitive and investment-friendly business environment.
NTOM to transform FBR operations
A central focus of the seminar was the introduction of the New Tax Operating Model (NTOM), which the advisor described as a major structural transformation of the Federal Board of Revenue (FBR).
He explained that the NTOM will shift the FBR from a traditional officer-driven system to a data-led, technology-enabled, faceless and accountable tax administration.
Under the new framework, audit, assessment and field operations will be separated into specialised functions, supported by centralised data analytics, digital technologies and risk-based compliance systems.
The advisor said the reforms are designed to reduce administrative discretion, minimise direct interaction between taxpayers and tax officials, strengthen taxpayer rights and improve transparency, consistency and operational efficiency across the tax administration.
Experts discuss tax reforms
The seminar also featured discussions on tax policy and digital transformation by leading experts.
Economist Dr Nadeem Ul Haque delivered the keynote address on tax policy reforms, while FCA Muhammad Rehan Siddiqui presented a session on faceless jurisdiction and the digitalisation of tax administration.
Speaking at the event, Pakistan Tax Bar Association President Ehsan-ul-Haq Sheikh, Lahore Tax Bar Association President Rana Saqib Munir, and Patron of the Pakistan Tax Bar Association and Chairman of the Pakistan Tax Bar Academy Abdul Qadir Memon welcomed the government’s continued engagement with the tax community.
They reaffirmed their commitment to constructive dialogue with policymakers to help develop a simpler, more transparent, technology-driven and business-friendly tax system that supports sustainable economic growth and encourages voluntary tax compliance.