ISLAMABAD, October 19, 2026: Prime Minister Shehbaz Sharif on Monday directed the Federal Board of Revenue (FBR) to accelerate its reform programme and swiftly introduce a faceless tax collection system across Pakistan, stressing that transparency, technology and accountability were essential to improving tax collection.
Chairing a high-level review meeting, the prime minister expressed satisfaction over the initial results of ongoing reforms but called for further improvements in the FBR’s institutional capacity to narrow the country’s tax gap.
He said the reform process must continue without interruption, with particular emphasis on modern technology, professional training and transparent procedures.
The prime minister directed FBR officials to improve their performance in line with public expectations and ensure that the reforms delivered measurable results.
PM calls for strict action against corruption in FBR
Shehbaz Sharif reiterated the government’s zero-tolerance policy towards corruption and directed authorities to take action against corrupt elements within the tax department without discrimination.
He said officials demonstrating genuine improvements in their conduct and performance should be given an opportunity to reform, but corruption and persistent underperformance would not be tolerated.
The prime minister emphasised that strengthening accountability and reducing discretionary powers were necessary to improve the efficiency and credibility of the tax administration.
He also called for continuous improvements in staff training and institutional performance.
FBR tax gap reduced from 6pc to 5pc of GDP
During the meeting, officials briefed the prime minister on reforms introduced over the past three years, including changes to technology, administrative procedures and human resource management.
The meeting was informed that these measures had reduced the estimated tax gap from 6 percent to 5 percent of gross domestic product (GDP).
Officials said the increased use of technology had also significantly reduced the discretionary powers of FBR personnel, helping improve transparency in tax administration.
The government is now pursuing further technological restructuring to strengthen revenue collection and improve the department’s operational capacity.
FBR recruits 957 auditors to strengthen tax scrutiny
The meeting was informed that 957 auditors had been recruited on a contractual basis through a merit-based third-party arrangement to strengthen financial scrutiny.
According to the briefing, the recruitment had increased the FBR’s overall audit capacity fourfold.
Officials also outlined measures to improve professional standards, including specialised training for newly recruited FBR personnel at Lahore University of Management Sciences (LUMS).
Existing officers are receiving continuous in-service training to improve their technical and administrative capabilities.
A Peer Rating System has also been introduced to assess officers’ performance and strengthen internal accountability.
Technology-driven tax reforms to be expanded
The prime minister was briefed on plans for large-scale technological restructuring within the FBR, including the recruitment of skilled technical professionals and the introduction of performance-linked incentives.
Officials said the reforms were designed to modernise tax administration, improve efficiency and strengthen accountability across the department.
Shehbaz Sharif directed the authorities to expedite the nationwide implementation of the faceless tax collection mechanism as part of efforts to reduce direct interactions and discretionary practices in tax administration.
The meeting was attended by federal ministers Ahsan Iqbal, Azam Nazeer Tarar, Ahad Khan Cheema, Muhammad Aurangzeb and Attaullah Tarar.
Minister of State Bilal Azhar Kayani, Attorney General Mansoor Awan and other senior government officials were also present.