ISLAMABAD: The Federal Board of Revenue (FBR) has taken a significant step forward in its efforts to combat offshore tax evasion by initiating the development of a sophisticated IT solution aimed at detecting foreign assets held by Pakistani nationals.
This digital initiative is intended to leverage the global framework for the automatic exchange of information (AEOI) and enhance the FBR’s monitoring capabilities.
To spearhead this effort, the FBR has constituted a specialized business domain team tasked with formulating the Terms of Reference (TORs) for designing and deploying an indigenous IT solution. The system will allow the FBR to effectively analyze, process, and utilize data received through international cooperation on financial transparency.
Key members of this domain team include Fida Muhammad, Chief of International Taxes; Mehdi Hassan, Secretary for Automatic Exchange of Information; Akbar Mayo, Revenue Advisor at REMIT (FCDO); and experts from Pakistan Revenue Automation Pvt. Ltd. (PRAL), such as Dr. Fareed Zafar, Azeem Shoukat, and Riaz Alam. The collaboration between FBR and PRAL ensures technical depth and continuity in the project.
In addition to in-house expertise, the FBR has engaged global consultancy firm PwC to provide input on best practices, compliance standards, and solution design. The joint effort will deliver a reliable solution tailored to Pakistan’s tax enforcement needs, particularly in identifying undeclared foreign bank accounts, real estate, and other offshore holdings.
According to the FBR, the primary objective of this digital solution is to enable real-time data integration, validation, and risk analysis of financial information obtained through bilateral and multilateral exchange agreements. This would significantly enhance the FBR’s ability to trace illicit financial flows and increase tax compliance among high-net-worth individuals.
The FBR emphasized that a robust and indigenous IT solution will not only strengthen its institutional framework but also reduce dependency on foreign platforms, improving data security and governance.
Once fully developed, the solution is expected to become a cornerstone of Pakistan’s strategy to curb tax evasion and ensure fair taxation.
This move reflects the FBR’s long-term commitment to adopting technology-driven solutions that reinforce transparency and fiscal accountability in line with international standards.
