Islamabad, May 20, 2025 – Prime Minister Muhammad Shehbaz Sharif on Tuesday directed the Federal Board of Revenue (FBR) to expedite and fully implement ongoing tax reforms with a particular emphasis on digitization, automation, and transparency in the national tax system.
Chairing a high-level review meeting in Islamabad, Shehbaz stressed that decisive and transformative steps must be taken to address what he termed “70 years of mismanagement” in the tax administration. The Prime Minister underlined that the goal is not just to increase revenue but to overhaul the FBR in a way that it operates with modern efficiency and fairness.
“We will fully support and facilitate honest taxpayers and legitimate businesses,” Shehbaz said, “but tax evaders and smugglers must be dealt with through strict legal action. There will be no exemptions or leniency for those undermining the national economy.”
The meeting reviewed the implementation of a National Targeting System designed to curb sales tax evasion. The system involves the use of e-tags, digital surveillance tools, and a centralized e-Bilty framework integrated into the FBR’s systems. These tools will monitor goods transport vehicles in real-time, especially on major highways and city entry points, to crack down on smuggling and tax avoidance.
In addition, a Customs Targeting System is being developed for ports and airports to monitor imports and exports using artificial intelligence. This system will connect with both local and international data sources to identify tax fraud and illicit trade more effectively.
Officials informed Shehbaz that the FBR will also initiate extensive training programs for staff to manage the newly introduced technologies. A phased rollout is expected, beginning with a pilot project in a key urban center. High-risk sectors like tobacco, beverages, steel, cement, poultry feed, and hatcheries will face enhanced monitoring similar to systems already in place for the sugar industry.
Shehbaz instructed that all measures be implemented efficiently, promptly, and in a way that ensures long-term sustainability. He praised the FBR and its enforcement arms for their improved performance and urged continued dedication to transforming Pakistan’s tax landscape.