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PM directs timely completion of FBR tax reforms, third-party audits

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At a glance

  • PM directs FBR to accelerate reforms and ensure third-party audits.
  • 'Faceless assessment' in customs has reportedly increased revenue per GD by 12%.
  • Digitalisation efforts include IRIS 3.0, with goals for AI and machine learning.

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Prime Minister Shehbaz Sharif has been chairing weekly reviews of the Federal Board of Revenue's (FBR) reform program, aimed at modernising tax administration and curbing evasion. Key initiatives include the digitalisation of the tax system through IRIS 3.0, restructuring Pakistan Revenue Automation Limited (PRAL), and cracking down on fuel smuggling. The prime minister has consistently emphasised the need for timely implementation and independent third-party audits of all reform measures.

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During a weekly review, officials reported that a 'faceless assessment' system in the customs sector has increased average revenue per Goods Declaration by 12% in the first half of 2026. The prime minister directed that all reforms be completed on time and undergo third-party audits.

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In a briefing, officials reported that the introduction of 'faceless assessment' in the customs sector had produced positive results, with average revenue per Goods Declaration (GD) increasing by 12 per cent during January-June 2026. The system has also reportedly helped improve the identification of irregularities in imports.

The meeting was also informed that new senior leadership had been appointed at Pakistan Revenue Automation Ltd (PRAL) and that work was progressing on IRIS 3.0, which aims to eventually use artificial intelligence and machine learning to improve tax collection. The recruitment of 280 goods evaluators is also underway.

In a weekly review meeting on Federal Board of Revenue (FBR) reforms, Prime Minister Shehbaz Sharif was briefed on new targets and progress in the government's crackdown on illegal economic activities.

Officials reported that a target of Rs 4 trillion in recorded transactions through digital invoicing has been set for December. To curb fuel smuggling, GIS tagging of all legal petrol pumps has been completed, alongside GPS tracking of petroleum products and the integration of oil marketing companies' ERP systems. A central mobile app for petroleum tracking has also been activated for law enforcement agencies.

Through the 'Rahguzar' app, 2,500 illegal petrol pumps have reportedly been closed and handed over to the authorities. The briefing also outlined a timeline for a new Central Assessment Unit in Islamabad, with an interim setup to be functional by December 31 and a fully integrated complex by June 2027.

The prime minister praised the efforts of the FBR chairman and his team, reiterating the need to intensify actions against tax evasion and smuggling. He also described the transparent appointment of reputable goods evaluators within the FBR as a welcome step.

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