Prime Minister Shehbaz Sharif calls for faster Federal Board of Revenue reforms, greater transparency and accountability as the government reports a decline in the tax gap and a fourfold increase in audit capacity.
Prime Minister Shehbaz Sharif on Monday directed the Federal Board of Revenue (FBR) to accelerate its ongoing reforms, improve tax collection capacity and take indiscriminate action against corrupt elements, according to an official statement issued by the Prime Minister’s Office.
Chairing the weekly review meeting on FBR affairs in Islamabad on Oct. 19, 2026, the prime minister said the initial results of the reforms were encouraging but stressed the need for continued improvements to address Pakistan’s tax gap.
Sharif directed the revenue authority to focus on technology, effective training, transparency and accountability to make the reforms more effective. He also called for accelerating the implementation of a faceless system in tax collection, which aims to reduce direct interaction between taxpayers and tax officials.
The prime minister said FBR officers were responsible for improving their performance in line with public expectations. He maintained that the reforms served the broader interests of the state and would continue.
Sharif also called for a distinction between employees willing to improve and those continuing to engage in corruption or demonstrate poor performance. According to the statement, he said officers and staff members who improved their conduct and performance should be given an opportunity to reform, while there would be no place in the institution for those who persisted in corruption and poor performance.
FBR reports decline in tax gap
During the meeting, officials briefed the prime minister on progress in reforms involving technology, operational systems and human resources.
According to the briefing, the estimated tax gap declined from 6% of gross domestic product to 5% over the past three years as a result of the reforms.
Officials also reported that the effective use of technology had significantly reduced the discretionary powers of FBR officers, a measure intended to improve transparency and strengthen institutional accountability.
The meeting was informed that newly appointed FBR officers were receiving training at the Lahore University of Management Sciences (LUMS). In-service training programs were also underway for officers already working in the department.
A peer rating system had been introduced to assess officers’ performance, according to the briefing.
957 third-party auditors appointed
Officials told the meeting that 957 auditors had been hired on a contractual basis as third-party auditors through a merit-based process to strengthen the FBR’s audit capacity.
Their appointment had increased the department’s audit capacity fourfold, according to the official briefing.
The FBR is also undergoing extensive technology-based restructuring. Officials said the recruitment of specialized technical personnel and a performance-linked incentive system had been introduced as part of the broader reform process.
The measures are intended to strengthen the tax authority’s operational capacity and improve its performance.
Federal ministers Ahsan Iqbal, Azam Nazeer Tarar, Ahad Khan Cheema, Muhammad Aurangzeb and Attaullah Tarar attended the meeting, along with Minister of State Bilal Azhar Kayani, Attorney General Mansoor Usman Awan and senior government officials.
The information was released by the Prime Minister’s Office in Press Release No. 445/2026.
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