Steel Sector Urges FBR To Resolve PRAL Delays

Pakistan’s formal steel industry has urged the Federal Board of Revenue (FBR) to take immediate action over delays and operational problems that it says are slowing the implementation of reforms announced in the federal budget for 2026-27.

In a letter addressed to FBR Chairman Rashid Mahmood Langrial, industry representatives called for the swift activation of budget measures designed to encourage corporatisation, documentation and digitalisation, while also reducing tax evasion and expanding the tax base.

Although the sector welcomed the overall policy direction, it expressed concern over prolonged delays at Pakistan Revenue Automation (Private) Limited (PRAL). According to the industry, taxpayers are facing difficulties because routine and relatively minor operational issues often remain unresolved for long periods.

A major issue involves the conversion of Associations of Persons (AOPs) into corporate structures. The steel sector said PRAL’s delays in merging or connecting old and new Sales Tax Registration Numbers (STRNs) and National Tax Numbers (NTNs) were creating serious complications, despite intervention by Inland Revenue Operations authorities.

The industry recommended the introduction of a time-bound process to handle such cases on an urgent basis and ensure that they are resolved without unnecessary delays.

It also proposed creating a specialised facilitation team at FBR headquarters. The team would be led by a senior official and supported by a small group of officers, operating as a single-window platform for addressing taxpayers’ operational concerns.

The proposed unit would coordinate with PRAL, chief commissioners, commissioners and other relevant FBR formations, while ensuring that issues affecting the steel sector receive suitable priority.

The industry further criticised the FBR’s continued use of traditional DAK and ordinary postal services for communication between headquarters and the offices of chief commissioners and commissioners.

It said this correspondence system was time-consuming and contributed to avoidable delays in decisions and the execution of reforms. As an alternative, the sector recommended shifting the FBR’s communication network towards a fast-track official email and digital correspondence mechanism.

The steel industry also appreciated several recent institutional changes introduced by the FBR, particularly the wider delegation of powers and decentralisation of responsibilities to the second tier of leadership. It noted that the placement of competent officers in important positions had improved the overall working environment.

It also welcomed the creation of the Member Strategic Transformation position, describing it as a practical and forward-looking initiative that demonstrated the FBR’s commitment to institutional improvement.

According to the industry, the budget measures had raised expectations for the revival and expansion of Pakistan’s steel sector. However, delays in their operationalisation and implementation were preventing the reforms from delivering their full intended benefits.

The sector therefore asked the FBR chairman to give priority to establishing a dedicated facilitation mechanism and resolving PRAL-related delays so that the reforms announced in the 2026-27 budget could produce visible and practical results.