Shehbaz Sharif calls for faster digitalisation, stronger revenue systems and third-party oversight of tax reforms
Prime Minister Shehbaz Sharif has directed authorities to ensure the timely implementation of FBR reforms and intensify action against tax evasion, smuggling and illegal businesses.
Chairing the weekly review meeting on Federal Board of Revenue reforms in Islamabad, the prime minister called for a third-party audit of the reform process to improve transparency, efficiency and long-term sustainability.
Shehbaz Sharif said digitalisation, production monitoring and automated systems were central to efforts aimed at modernising Pakistan’s tax administration. He also welcomed the appointment of reputed goods evaluators within the FBR and appreciated the board’s leadership for advancing the reforms.
The meeting was informed about progress on the restructuring of Pakistan Revenue Automation Limited (PRAL), digital tax initiatives and measures designed to strengthen revenue collection. Work is also progressing on IRIS 3.0, a new tax operating model and a central data hub intended to create an integrated, data-driven tax system.
International consultants have been engaged to help develop IRIS 3.0, while a related project is being pursued to improve tax administration, introduce pilot auto-taxation and eventually use artificial intelligence and machine learning to enhance tax collection.
Officials also briefed the meeting on changes at PRAL, including new senior-level appointments covering technology, data security, operations and taxation.
The meeting was told that faceless assessment in customs had produced positive results. Between January and June 2026, average revenue per Goods Declaration increased by 12%, while the system also strengthened the identification and monitoring of irregular imports.
The recruitment of 280 goods evaluators is nearing completion. A Central Assessment Unit in Islamabad is expected to become operational by December 31, 2026, with its permanent facility planned for completion by June 2027.
Digital invoicing has also expanded significantly. Transactions increased from PKR 236 billion in July 2025 to PKR 2.5 trillion in July 2026, with a target of PKR 4 trillion by December.
To combat petroleum smuggling, authorities are using GIS tagging, GPS tracking, oil marketing company ERP integration and a central monitoring application. The Rahguzar app has reportedly helped shut down 2,500 illegal petrol pumps and initiate legal proceedings.
The prime minister directed authorities to maintain momentum and ensure the reforms deliver stronger revenue collection and a more transparent tax system.