ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to complete all ongoing reform measures within the prescribed timelines and arrange a third-party audit to ensure transparency, effectiveness and sustainability of the process.
Chairing a weekly review meeting on FBR reforms, the prime minister received a detailed briefing on the restructuring of PRAL, digitisation of the tax system and measures to curb smuggling.
He said tax reforms were vital for strengthening the national economy, while digitalisation, production monitoring and automation were key pillars of the FBR’s transformation. He also ordered authorities to accelerate action against tax evasion, smuggling and illegal businesses.
Officials said work was progressing on IRIS 3.0, a new tax operating model and a Central Data Hub to make the tax system integrated, modern and data-driven.
International consultants have been hired for the design of IRIS 3.0, while new senior leadership has been appointed at PRAL in technology, data security, operations and tax-related fields. Work is also underway to pilot automated taxation and eventually use artificial intelligence and machine learning to improve revenue collection.
The meeting was told that faceless customs assessment had produced positive results, with average revenue per goods declaration rising 12% between January and June 2026. Recruitment of 280 goods evaluators is nearing completion. A Central Assessment Unit in Islamabad is targeted for interim operation by December 31, 2026, with a fully integrated facility planned by June 2027.
Digital invoicing transactions rose from Rs236 billion in July 2025 to more than Rs2.5 trillion in July 2026, with a Rs4 trillion target set for December.
To combat petroleum smuggling, authorities have completed GIS tagging of legal petrol pumps, GPS tracking of petroleum products, ERP-tracker integration for oil marketing companies and a central tracking app. The Rah-e-Guzar app has helped shut down 2,500 illegal petrol pumps, with legal proceedings initiated against them.
The prime minister praised the appointment of reputed goods evaluators and directed further acceleration of the reform programme.
