Government directs FBR to expand digital monitoring systems by December

Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to expand its digital tax monitoring systems across key industries by December as part of a broader drive to widen the tax base and improve revenue collection.

 

Chairing a review meeting on FBR reforms, the prime minister instructed the tax authority to conduct a scientific, sector-wise assessment of Pakistan's tax potential and use data from the power sector and other institutions to identify undocumented businesses and individuals operating outside the tax net.

 

Officials informed the meeting that production tracking systems had already uncovered tax potential exceeding PKR 700 billion across five major sectors. Tracking systems are currently operational in the sugar, cement, tobacco, tiles and fertiliser industries, while implementation is underway in nine additional sectors with an estimated PKR 560 billion in tax potential.

 

Sharif directed the FBR to extend digital monitoring to the textile, beverages, steel, poultry, edible oil and ghee, and tyre industries by the end of the year, while ordering the completion of indirect tax tracking systems across the production sector.

 

The prime minister also instructed FBR Chairman Rashid Langrial and senior officials to spend the first week of every month in Karachi to address concerns raised by businesses and taxpayers. He stressed that compliant taxpayers should be facilitated and ordered merit-based appointments and transfers within the FBR to improve transparency and professionalism.

 

Officials said reforms include the appointment of 957 third-party auditors, recruitment of 280 goods evaluators under the faceless Customs system, enhanced training for tax officers, and the establishment of a case scrutiny committee to reduce unnecessary litigation.

 

The meeting was also informed that Alternative Dispute Resolution Committees (ADRCs) resolved 152 of 377 applications within 90 days by June 2026, resulting in the recovery of PKR 54 billion in taxes. The prime minister directed the FBR to accelerate reforms and strengthen digital enforcement to improve tax compliance and reduce revenue leakages.