Prime Minister Muhammad Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to complete its reforms within the set deadline.
He also ordered third-party audits to check the reforms’ transparency, effectiveness and sustainability.
Shehbaz issued the directives during a weekly meeting on FBR reforms in Islamabad.
Officials briefed the prime minister on several key initiatives. These included the restructuring of PRAL, tax system digitalization, and measures against smuggling and tax evasion.
Shehbaz Pushes Faster Tax Reforms
Shehbaz said the government was implementing tax reforms to support national development.
He identified digitalization, production monitoring and automated systems as key parts of the FBR reform agenda.
The prime minister also welcomed the appointment process for goods examiners with strong professional reputations.
He praised FBR Chairman and his team for their work on the reform program.
Shehbaz also ordered authorities to intensify action against tax evasion, smuggling and illegal businesses.
He called for faster reforms to modernize the tax system and improve revenue collection.
The prime minister also directed officials to work toward eliminating smuggling.
FBR Advances IRIS 3.0
Officials told the meeting that work on IRIS 3.0 is progressing in phases.
The new system will support a modern and data-driven tax operating model.
The FBR also plans to create a central data hub. This system will connect tax information and improve integration across the department.
International consultants are helping design IRIS 3.0.
Meanwhile, PRAL has appointed new senior leaders for technology, data security, operations and tax-related functions.
Officials said the FBR plans to pilot the auto-tax concept under IRIS 3.0.
The system could later use artificial intelligence and machine learning to improve tax collection.
Customs Assessment Shows Higher Revenue
The meeting also reviewed the impact of faceless assessment in customs.
Officials reported a 12 percent increase in average revenue per goods declaration from January to June 2026.
The system has also improved the identification and monitoring of irregular imports.
The FBR is now completing recruitment for 280 goods examiners.
Authorities want these appointments to strengthen and integrate the customs assessment system.
The government is also establishing a Central Assessment Unit in Islamabad.
Officials expect the unit to operate under interim arrangements by December 31, 2026.
The government plans to activate a fully integrated facility in a new complex by June 2027.
Digital Invoicing Surges
Digital invoicing has also recorded significant growth.
Businesses processed Rs. 236 billion in digital invoices during July 2025.
That figure jumped to more than Rs. 2.5 trillion in July 2026.
The government aims to increase digital invoicing transactions to Rs. 4 trillion by December 2026.
The increase reflects the government’s wider push toward digital tax administration.
Government Targets Petroleum Smuggling
Officials also updated the meeting on measures against petroleum smuggling.
Authorities have completed several initiatives to prevent the illegal movement of petroleum products.
These measures include GIS tagging for all legal petrol pumps.
The government has also introduced GPS tracking for petroleum shipments.
Authorities are linking oil marketing companies’ enterprise resource planning systems with the tracking system.
They are also developing a central tracking app for law enforcement agencies.
Through the Rah-e-Raftar app, authorities have closed 2,500 illegal petrol pumps.
Officials have also started legal action against those involved.
Work continues on digital monitoring of petroleum sales and other anti-smuggling measures.
PM Orders Independent Audits
Shehbaz again directed officials to complete all FBR reforms within the agreed timeframe.
He also ordered independent third-party audits of the reforms.
The audits will assess transparency, effectiveness and long-term sustainability.
The prime minister called for faster implementation across the reform program.
He said the measures should modernize the tax system, strengthen revenue collection and eliminate smuggling.
Senior Officials Attend Meeting
Federal Ministers Azam Nazeer Tarar, Dr. Musadiq Masood Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar and Shaza Fatima Khawaja attended the meeting.
Minister of State Bilal Azhar Kayani and Member of the National Assembly Usman Owais also participated.
State Bank Governor Jameel Ahmad, FBR Chairman and other senior officials were also present.
