PM Shehbaz Sharif reviews FBR reforms, including PRAL restructuring, IRIS 3.0, digital invoicing, customs assessment and anti-smuggling measures.
Prime Minister Shehbaz Sharif has directed authorities to accelerate the implementation of Federal Board of Revenue (FBR) reforms within the Determined timelines and ensure third-party audits to improve transparency, effectiveness and sustainability.
Chairing a weekly review meeting on FBR reforms in Islamabad, Shehbaz said tax reforms were being implemented to support the country’s economic development. He identified digitalization, production monitoring and automated systems as key pillars of the reform process.
The prime minister was briefed on the restructuring of Pakistan Revenue Automation Limited (PRAL), along with progress on the digitalization of the tax system and measures to curb smuggling.
Officials said work was progressing in phases on IRIS 3.0, a new tax operating model and a central data hub aimed at making the tax system more modern, integrated and data-driven. International consultants have been hired to assist in designing IRIS 3.0.
The meeting was also informed that new senior leadership had been appointed at PRAL in areas including technology, data security, operations and tax domain expertise. Work is underway to pilot the concept of automated taxation and eventually use artificial intelligence and machine learning to improve tax collection.
In the customs sector, officials reported positive results from faceless assessment. Average revenue per goods declaration increased by 12% between January and June 2026, while the system also improved the identification and monitoring of import-related irregularities.
The recruitment process for 280 goods evaluators is in its final stages. Progress is also underway on establishing a Central Assessment Unit in Islamabad, with an interim facility targeted to become operational by Dec. 31, 2026, and a fully integrated facility planned for the new complex by June 2027.
Digital invoicing also recorded a sharp increase. Transactions processed through digital invoicing rose from 236 billion rupees in July 2025 to more than 2.5 trillion rupees in July 2026. The government has set a target of 4 trillion rupees in digital invoicing transactions by December 2026.
On anti-smuggling efforts, officials said GIS tagging of legal petrol pumps, GPS-based tracking of petroleum products, integration of oil marketing companies’ ERP systems with trackers and a centralized tracking application for law enforcement agencies had been completed. The Rahguzar app was also used to shut down 2,500 illegal petrol pumps and initiate legal action against them.
Shehbaz directed authorities to further accelerate action against tax evasion, smuggling and illegal businesses and ensure timely completion of all FBR reform measures.
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