Shehbaz Sharif directs FBR to enhance tracking systems, identify untaxed sectors, and take legal action against businesses involved in tax evasion.
Prime Minister Muhammad Shehbaz Sharif on Wednesday directed authorities to identify individuals and businesses operating within the informal economy and initiate strict legal action against those involved in tax evasion as part of the government’s broader efforts to strengthen revenue collection and improve tax compliance.
Chairing a weekly review meeting on reforms at the Federal Board of Revenue (FBR), the prime minister instructed officials to develop a comprehensive and scientific framework to assess tax potential across various sectors of the economy.
He emphasized that broadening the tax base and ensuring fair taxation remained key priorities of the government.
During the meeting, Shehbaz Sharif highlighted that, for the first time in Pakistan’s history, sugar production data had been successfully aligned with FBR records.
He described this achievement as evidence that the production tracking system installed by the FBR was functioning effectively and delivering tangible results.
The prime minister also commended the FBR chairman and his team for their efforts in improving tax administration.
He stressed that taxpayers who consistently comply with tax laws are valuable national assets and deserve recognition. The prime minister noted that the government has provided significant facilitation to both export-oriented and domestic industries and intends to continue supporting the business community.
To strengthen engagement with businesses, he directed the FBR chairman and senior officials to spend the first week of every month in Karachi to hear and resolve concerns raised by the business sector.
He also instructed authorities to operationalize digital production monitoring systems by December in key sectors, including textiles, beverages, steel, poultry, edible oil and ghee, and tyres.
The prime minister reiterated that all appointments and transfers within the FBR would be based strictly on merit.
He praised the recently introduced performance evaluation system for FBR officers and ordered the preparation of a list of high-performing officials for recognition on Independence Day.
Officials informed the meeting that the FBR’s production tracking system is fully operational in the sugar, cement, tobacco, tiles, and fertilizer sectors. Implementation is nearing completion in five additional sectors with an estimated tax potential exceeding Rs700 billion. Work is also underway in nine more manufacturing sectors, which could generate an additional Rs560 billion in tax revenue.
Shehbaz Sharif directed authorities to complete the rollout of indirect tax collection tracking systems across the manufacturing sector by the end of the current year.
He also ordered an immediate third-party audit of Customs bonded warehouses to identify and address any irregularities.
The meeting was further briefed on ongoing human resource reforms, including international-standard training programs for newly recruited and existing officers, a performance-based accountability system, and measures to improve transparency.
Officials reported that the faceless customs clearance system has reduced cargo processing times while improving revenue collection, supporting the government’s efforts to modernize Pakistan’s tax administration.