PM Orders Third-Party Audit of FBR Reforms

Prime Minister Shehbaz Sharif has directed the government to conduct third-party audits of the reforms being implemented at the Federal Board of Revenue (FBR), while instructing officials to ensure that the planned changes are completed within clearly defined deadlines.

During a weekly meeting reviewing progress on FBR reforms, the prime minister also ordered authorities to intensify efforts against tax evasion, smuggling and businesses operating outside the legal framework, according to the Prime Minister’s Office.

The meeting examined ongoing measures aimed at restructuring the country’s tax administration, including reforms at Pakistan Revenue Automation Limited (PRAL), greater digitalisation and initiatives designed to tackle smuggling.

A major element of the reform programme is IRIS 3.0, through which authorities are gradually developing a new tax operating model alongside a centralised data hub. The initiatives are intended to connect different parts of the tax system, modernise its operations and strengthen data-based decision-making.

Officials informed the meeting that international consultants had been engaged to develop the IRIS 3.0 system. Work is also continuing to enhance the platform’s overall performance and effectiveness.

The government is simultaneously testing an automated taxation model and plans to introduce artificial intelligence and machine-learning technologies in future efforts to improve tax collection and enforcement.

The meeting was also informed that PRAL has recently brought in new senior officials to lead key functions, including technology, data security, operations and taxation.

Prime Minister Shehbaz identified digital transformation, production monitoring and automated processes as central pillars of the FBR’s reform agenda.

He instructed officials to ensure that the reforms are fully implemented within the established schedule, with the wider goal of modernising tax administration, improving revenue mobilisation and reducing smuggling.

The prime minister further emphasised that independent third-party monitoring should be introduced to objectively evaluate the implementation and effectiveness of the ongoing reforms.