ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to complete all ongoing reform initiatives within their prescribed timelines and ensure independent third-party audits to strengthen transparency, effectiveness and sustainability of the process.
Chairing a weekly review meeting on FBR reforms in Islamabad, the prime minister was briefed on the restructuring of Pakistan Revenue Automation Limited (PRAL), digitalisation of the tax system, customs reforms and measures aimed at curbing smuggling and illegal trade.
Shehbaz Sharif said the government was implementing tax reforms to support national development, describing digitalisation, production monitoring and automation as key pillars of the FBR reform agenda.
He also ordered authorities to intensify action against tax evasion, smuggling and illegal businesses. The prime minister welcomed the process of appointing reputable goods evaluators in FBR and praised Chairman FBR and his team for their efforts.
IRIS 3.0 and Central Data Hub Under Development
Officials told the meeting that 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 engaged to design IRIS 3.0, while new senior leadership has been appointed at PRAL in areas including technology, data security, operations and tax domain management.
The government is also working on piloting the concept of automated taxation under IRIS 3.0 and plans to use artificial intelligence and machine learning in the future to improve tax collection.
Faceless Customs Assessment Boosts Revenue
The meeting was informed that the faceless customs assessment system produced positive results during the first half of 2026.
According to the briefing, average revenue per Goods Declaration increased by 12% between January and June 2026.
Officials said the system had not only improved revenue collection per declaration but had also strengthened the detection and monitoring of irregularities in imports.
The recruitment of 280 goods evaluators is in its final stages as part of efforts to further streamline the customs assessment system.
Work is also progressing on a Central Assessment Unit in Islamabad. An interim arrangement is expected to become operational by December 31, 2026, while a fully integrated facility is targeted for completion in a new complex by June 2027.
Digital Invoicing Transactions Cross Rs2.5 Trillion
The meeting was told that transactions through digital invoicing had risen sharply over the past year.
In July 2025, digital invoicing transactions stood at Rs236 billion, while in July 2026 the figure crossed Rs2.5 trillion.
The government has set a target of Rs4 trillion in digital invoicing transactions by December 2026.
Crackdown on Illegal Fuel Trade
Officials also briefed the prime minister on anti-smuggling measures targeting the illegal movement and sale of petroleum products.
These include GIS tagging of legal petrol pumps, GPS-based tracking of petroleum products, linking oil marketing companies’ ERP systems with tracking mechanisms, and a central monitoring application for law enforcement agencies.
The meeting was told that around 2,500 illegal petrol pumps had been shut down and legal action initiated against them through the Rahguzar application.
Work is continuing on digital monitoring of petroleum product sales and other enforcement measures.
Shehbaz Sharif directed the authorities to accelerate implementation of reforms aimed at modernising the tax system, increasing revenue collection and eliminating smuggling.
He reiterated that all FBR reform measures must be completed within their stipulated deadlines and independently audited to ensure long-term credibility.
The meeting was attended by federal ministers Azam Nazeer Tarar, Dr Musadik Masood Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar and Shaza Fatima Khawaja, Minister of State Bilal Azhar Kayani, MNA Usman Awaisi, State Bank Governor Jameel Ahmad, the FBR chairman and other senior officials.
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