PM directs FBR to develop scientific method to assess tax potential to increase revenue

Prime Minister Shehbaz Sharif on Wednesday directed the Federal Board of Revenue (FBR) to develop a comprehensive and scientific methodology to assess tax potential in various sectors, with an aim to strengthen revenue generation and improve tax administration, according to a statement issued by the Prime Minister’s Office (PMO).

Chairing a weekly review meeting on RBA reforms, the prime minister directed authorities to work with the power sector to identify companies and individuals involved in the informal economy and tax evasion and initiate legal action against them.

He said that for the first time in Pakistan’s history, sugar industry production data matched FBR records, calling it clear evidence that the FBR’s monitoring system was working effectively and praising FBR Chairman Rashid Mahmood Langrial and his team for their efforts.

Prime Minister Shehbaz also praised taxpayers and companies that complied with tax laws, calling them “a valuable national asset”.

He said the government had extended the greatest possible ease in taxation to both domestic and export-oriented industries and would continue to do so.

The prime minister directed the FBR chairman and senior officials to spend the first week of every month in Karachi to listen to and resolve the concerns of the business community.

He also directed that the digital production tracking system for textile, beverages, steel, poultry, edible oil and ghee and tires sectors be made operational by December, and reiterated that appointments and transfers within the FBR would be made strictly on merit.

Prime Minister Shehbaz termed the new civil servant evaluation system commendable and said merit and transparency would remain the top priorities of the government. He ordered authorities to prepare a list of high-performing officers so that they could be recognized with awards on Independence Day.

The Prime Minister further ordered an immediate third-party audit and validation of the customs warehouses to identify and address any irregularities.

During the briefing, the officials updated the meeting on installation of production monitoring systems, human resource reforms and measures to improve the operational capacity of the FBR.

Read more: Prime Minister directs faster implementation of reforms to right the size of government

They said tracking systems were already fully operational in the sugar, cement, tobacco, tiles and fertilizer sectors, while implementation in five additional sectors, representing a fiscal potential of over Rs 700 billion, was in its final stages.

The meeting was informed that work was also underway with industry stakeholders to implement tracking systems in nine production sectors, unlocking an estimated additional fiscal potential of Rs 560 billion. The prime minister ordered that the implementation of indirect tax monitoring across the manufacturing sector be completed before the end of the year.

Officials said the newly recruited officers were undergoing training at one of Pakistan’s leading universities under programs designed around merit and performance, while serving officers were also undergoing training. The modules had been aligned with international standards and requirements of Pakistan’s tax system.

The meeting was informed that following the introduction of peer review and evaluation mechanisms, officials with strong professional reputations were being appointed to key customs and excise positions. A new system had also been introduced to reward high-performing officers and penalize those with poor performance.

Officials said 957 external auditors had been appointed to strengthen transparency, while 280 goods evaluators were being recruited under the faceless customs evaluation system on the basis of merit and transparency.

The meeting was further informed that a Case Scrutiny Committee was being established to reduce unnecessary tax litigation by deciding, on merit, whether tax-related cases should proceed. Under the Alternative Dispute Resolution Committees (ADRCs), 152 out of 377 applications had been resolved within 90 days till June 2026, resulting in recovery of Rs 54 billion in tax revenue.

According to the PMO, Prime Minister Shehbaz also chaired a meeting to review the implementation of the national integrated digital policy framework and ordered immediate measures to make the newly established Sky47 AI national data center available to all federal government institutions.

He said citizens will be able to access government document verification, banking, healthcare, transfers and other public services through a single digital identity once Pakistan’s national digital vision is fully implemented.

The Prime Minister said a single national data center would provide a central repository for data held by federal institutions, eliminating the need for separate data centers and generating savings of public resources.

“Pakistan Digital Authority is determining an active, efficient and transformative direction for government services, social system and in particular citizen service delivery,” he said.

Prime Minister Shehbaz said implementing the national digital vision in line with modern requirements was key to building an integrated society, adding that work under its three pillars – digital economy, digital citizen services and digital government services – was commendable.

He said effective implementation of the national digital policy would strengthen global partnerships and ensure effective representation of Pakistan in international forums, while consultation with all relevant institutions and the federal and provincial governments would align decision-making, institutional performance and transparency with international standards.

The prime minister directed that the national digital vision should be implemented first in health, agriculture, public services, housing and small and medium enterprises (SMEs) to ensure that citizens receive better services as quickly as possible, the PMO added.

He said that once fully implemented, citizens will be able to access a variety of public services through a single digital identity, including government document verification, banking services, healthcare, transfers and other public services.

Read: PM Shehbaz inaugurates Sky47 AI data center, hailing it as a step towards a ‘forward-thinking Pakistan’

According to the statement, Chief Minister Shehbaz also directed that a meeting of the National Digital Commission be convened soon so that all stakeholders, including provinces, have confidence in the policy. Established under the Pakistan Digital Nation Act 2025, the commission is chaired by the prime minister and includes all provincial chief ministers as members.

Officials told the meeting that the implementation of the digital vision was already underway in agriculture, food, health, energy, housing and SMEs, while work had begun in 14 additional priority sectors in line with the Prime Minister’s instructions to improve sectoral performance and support economic, industrial and commercial growth.

The PMO said the meeting was informed that the implementation in the housing sector would introduce a unique central identification number for all public and private properties, while the SME component would establish an integrated system of unique legal business identities, which would help boost economic output.

Officials added that the legal, administrative and institutional measures necessary for full implementation were being completed at a good pace, drawing on international experience and global best practices.