ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif ordered a forensic audit of the Pakistan Revenue Automation Limited (PRAL) system through an international consultancy firm after being briefed on a past sales tax fraud that occurred due to outdated digital infrastructure and weak monitoring mechanisms.
Chairing a review meeting on Federal Board of Revenue (FBR) reforms, the prime minister expressed strong displeasure over the revelation of the fraud, which had begun in 2018–19, according to a statement issued by the Prime Minister’s Office.
The prime minister directed that all companies, institutions, and individuals involved in the incident be identified and that a comprehensive investigation report be submitted within three weeks. He further instructed strict legal action against those found guilty once the inquiry is complete.
The meeting was attended by Federal Ministers Azam Nazeer Tarar, Muhammad Aurangzeb, Dr. Musadik Masood Malik, Attaullah Tarar, Ali Pervaiz Malik, Bilal Azhar Kayani, along with the FBR Chairman and senior officials from relevant departments.
During the meeting, officials briefed the prime minister on ongoing reform initiatives at the FBR and particularly within PRAL. They informed him that the modernized digital systems now feature multiple security layers—including an audit vault, database protection wall, security operations center, and continuous database monitoring mechanisms—to ensure data integrity and transparency.
It was also highlighted that the upgraded system now has built-in capabilities to record the user’s IP address whenever any data alteration occurs, a safeguard designed to prevent manipulation or tax fraud.
The meeting was informed that a fact-finding committee, previously constituted by the prime minister, had investigated the 2018–19 sales tax fraud and concluded that it resulted from PRAL’s obsolete digital system, absence of real-time monitoring, and inadequate database protection at the time.
Officials noted that several corrective reforms and technological upgrades have since been implemented to address these vulnerabilities under a broader digital modernization drive.
Prime Minister Shehbaz appreciated the FBR team for its recent performance and for earning international recognition at the World Bank’s Annual Conference in Washington, where the FBR’s reform case study was well-received.
