In a major push to modernize Pakistan’s tax system and clamp down on rampant tax evasion, Prime Minister Shehbaz Sharif on Tuesday directed the urgent implementation of digitisation and automation reforms within the Federal Board of Revenue (FBR). The directive came during a high-level review meeting focused on accelerating the ongoing overhaul of the country’s outdated taxation infrastructure.
The prime minister did not mince words as he highlighted the critical need to rectify what he termed as “70 years of mismanagement” within the national taxation framework. Emphasizing a zero-tolerance approach to tax evasion, Shehbaz Sharif vowed legal action without concessions against evaders, while assuring maximum facilitation for compliant taxpayers and businesses.
At the core of the reforms is the launch of a National Targeting System, a technology-driven initiative aimed at tackling sales tax evasion. The new system will leverage e-tags, digital tracking devices, and an e-Bilty mechanism—a digital freight invoice system—to monitor the movement of goods across the country. These tools will be integrated with the FBR’s internal systems to ensure real-time tracking and transparency in logistics and trade operations.
The initiative includes plans to install digital monitoring infrastructure on key highways and city entry points. These installations are intended not only to combat smuggling but also to reduce delays for commuters and transporters by enabling efficient traffic flow management and goods verification.
The review meeting also featured a comprehensive briefing on a Customs Targeting System, designed to automate the monitoring of imports and exports at major ports and airports. This system will employ artificial intelligence and link with both domestic and international databases, allowing authorities to flag suspicious activities, reduce human error, and detect potential fraud. The integration of AI into Pakistan’s customs operations marks a major leap toward smarter border and trade management.
Training for FBR personnel on these new digital tools and platforms is also a key focus of the reforms. Officials confirmed that a phased rollout is planned, starting with a pilot project in one of Pakistan’s major cities before being expanded nationwide. This step-by-step approach is aimed at ensuring smooth implementation and maximum operational efficiency.
Sectors historically prone to tax evasion—such as cement, hatcheries, poultry feed, tobacco, beverages, and steel—will be subject to enhanced digital surveillance. The monitoring systems used successfully in the sugar industry will now be adapted and expanded to these critical sectors, making real-time oversight and compliance enforcement more robust.
In parallel to the digital reforms, PM Shehbaz Sharif also announced the formation of a high-level political committee to supervise the implementation of the National Fiscal Pact. This committee will play a strategic role in developing consensus among the federation and provinces on critical fiscal issues, including debt burden sharing and the construction of vital water infrastructure in response to geopolitical tensions, particularly with India.
The newly formed eight-member committee will be co-chaired by Deputy Prime Minister Ishaq Dar and PPP Chairman Bilawal Bhutto Zardari, and will include federal ministers from key portfolios such as defence, planning, finance, economic affairs, law, and the Attorney General for Pakistan.
These developments reflect the government’s renewed commitment to leveraging digital technologies to address systemic inefficiencies in tax governance, enhance transparency, and build a more sustainable, tech-enabled fiscal framework for Pakistan.
