Pilot project aims to create a faceless, AI-powered tax administration system to enhance transparency, compliance and revenue collection
Prime Minister Shehbaz Sharif on Thursday directed authorities to launch a pilot phase of an Artificial Intelligence (AI)-driven automated tax system in Islamabad as part of the government’s efforts to modernise tax administration, improve compliance and strengthen revenue collection.
The directive was issued during a high-level meeting reviewing reforms within the Federal Board of Revenue (FBR), where officials briefed the prime minister on plans to make Inland Revenue operations more efficient, transparent and largely faceless through the use of advanced technologies.
Prime Minister Shehbaz Sharif has ordered the launch of a pilot phase of an AI-powered automated tax management system in Islamabad, describing the initiative as a major step towards reforming Pakistan’s tax administration.
Chairing a review meeting on Federal Board of Revenue reforms, the prime minister emphasized that reducing human intervention and discretionary powers in tax collection is essential for improving transparency, fairness and public trust in the taxation system.
“The implementation of this system will not only enhance tax revenues but will also promote transparency, fairness and confidence in the tax regime,” he said.
Officials informed the meeting that the proposed automated framework will integrate data from multiple sources, including property records, vehicle ownership databases and banking transactions, enabling authorities to identify under-reported income and concealed assets more effectively.
The system is expected to employ Artificial Intelligence and advanced analytics to automate tax administration processes, improve compliance monitoring and reduce opportunities for tax evasion.
As part of the proposed structure, authorities plan to establish a National Faceless Audit Wing, a National Assessment Wing and a Field Operations Wing to strengthen oversight and operational efficiency.
The prime minister directed officials to begin implementation in Islamabad before considering expansion of the system across the country.
During the meeting, officials also briefed participants on enforcement efforts against the illegal cigarette trade. The government was informed that ongoing actions in the tobacco sector are expected to generate an additional Rs40 billion in tax revenues during the current fiscal year.
Prime Minister Shehbaz praised provincial governments for supporting anti-smuggling and enforcement initiatives, reiterating the government’s commitment to broadening the tax base, documenting the economy and modernising revenue administration.
The meeting was attended by senior federal ministers, government officials and representatives involved in tax reform and economic policy.
