PM asks FBR to ensure third-party audits

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday directed Federal Board of Revenue (FBR) to accelerate implementation of its reform programme and ensure third-party audits of the measures being introduced, as the government seeks to modernise tax administration and curb evasion and smuggling. Chairing a weekly review meeting on FBR reforms, the prime minister said all reform measures should be completed within the stipulated timeframe and their transparency, effectiveness and sustainability ensured through independent third-party audits. He said tax reforms were being implemented for the country’s development, adding that digitalisation, production monitoring and automation were key pillars of the FBR reform programme. The meeting was given a detailed briefing on reforms under way at the FBR, particularly the restructuring of Pakistan Revenue Automation Ltd (PRAL), digitalisation of the tax system and measures to prevent smuggling. Officials said work was progressing on IRIS 3. 0, a new tax operating model and a central data hub as part of efforts to make the tax system more integrated, modern and data-driven. International consultants have been engaged for the design of IRIS 3. 0. The meeting was told that new senior leadership had been appointed at PRAL in areas including technology, data security, operations and tax-domain expertise. Under IRIS 3. 0, work is also under way to improve the efficiency of the tax system, pilot automated taxation and eventually use artificial intelligence and machine learning to improve tax collection, officials said. The prime minister directed the authorities to further intensify action against tax evasion, smuggling and illegal businesses and speed up implementation of reforms aimed at increasing revenue collection. The meeting was informed that the introduction of faceless assessment in the customs sector had produced positive results. Average revenue per Goods Declaration (GD) increased by 12 per cent during January-June 2026, officials said. They added that faceless assessment had also helped improve the identification and monitoring of irregularities in imports. The recruitment of 280 goods evaluators to further integrate the customs assessment system is in its final stages, the meeting was told. Progress was also reviewed on the establishment of a Central Assessment Unit in Islamabad. The unit is to be made operational under an interim arrangement by Dec 31, 2026, while a fully integrated facility at a new complex is targeted for completion by June 2027. The meeting was told that digital invoicing transactions had risen from Rs236 billion in July 2025 to more than Rs2. 5 trillion in July 2026, with the government targeting Rs4trillion by December 2026. The expansion of digital invoicing is part of the FBR’s wider efforts to document economic activity, improve monitoring and strengthen tax collection through digital systems. The meeting was told that GIS tagging of legal petrol pumps, GPS tracking of petroleum products and a central tracking system for law-enforcement agencies had been completed to curb smuggling. Officials said the Raah-Guzar app had helped shut around 2, 500 illegal petrol pumps, while digital monitoring of petroleum sales was being expanded. The prime minister directed that reforms be completed on time, independently audited and accelerated to modernise the tax system, boost revenue and curb smuggling. Copyright Business Recorder, 2026

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