ISLAMABAD:
Prime Minister Shehbaz Sharif on Tuesday directed the swift implementation of Federal Board of Revenue (FBR) reforms, emphasizing the critical role of digitisation and automation in transforming Pakistan’s outdated tax system.
Presiding over a high-level meeting, the prime minister underscored the need to correct decades of inefficiency and mismanagement in the taxation sector, which he said has spanned 70 years. He assured full support for compliant taxpayers and businesses, while warning of tough legal consequences for tax evaders, without exceptions.
A major point of discussion was the introduction of a National Targeting System aimed at curbing sales tax fraud. This new framework will leverage electronic tags, tracking devices, and a digital e-Bilty system to monitor goods transportation across the country. These tools will be integrated with the FBR’s digital infrastructure.
To combat smuggling and ease congestion, digital monitoring checkpoints are planned for major highways and entry points into urban areas.
The meeting also reviewed progress on a Customs Targeting System, designed to automate import and export tracking at ports and airports. This system will use artificial intelligence and connect with both domestic and international databases to combat smuggling and tax evasion.
Training plans for FBR personnel on the new technologies were discussed, with an initial pilot project scheduled for rollout in a major city as part of a phased implementation strategy.
Sales tax surveillance will also be tightened across key sectors, including cement, tobacco, hatcheries, poultry feed, and beverages. Monitoring systems already in place for the sugar industry will be expanded to these sectors to enhance compliance.
Prime Minister Shehbaz urged that all reform measures be implemented promptly, efficiently, and in a sustainable manner.
In a parallel move, the prime minister has formed a high-level political committee to oversee the execution of the National Fiscal Pact. The committee will also work on forging a national consensus on debt burden sharing between the federal and provincial governments and coordinate key water infrastructure initiatives in response to regional tensions, particularly with India.
Deputy Prime Minister Ishaq Dar (PML-N) and Bilawal Bhutto Zardari (PPP) will co-chair the eight-member committee. Other members include the ministers for defence, planning, finance, economic affairs, and law, along with the Attorney General for Pakistan, as per a directive from the Prime Minister’s Office.
This committee was formed following a key meeting between the PML-N and PPP leadership in Lahore over the weekend.
