ISLAMABAD, Pakistan – May 20, 2025 – Prime Minister Shehbaz Sharif on Tuesday directed the immediate and effective implementation of ongoing reforms within the Federal Board of Revenue (FBR), placing a strong emphasis on the digitization and automation of the tax system.
Chairing a high-level review meeting, the Prime Minister underscored the necessity for decisive action to rectify what he termed “70 years of mismanagement” in the tax system.
He stated that while maximum facilitation would be extended to honest taxpayers and legitimate businesses, those involved in tax evasion would face stringent legal action without any concessions. The Prime Minister acknowledged and commended the efforts of the FBR and its supporting enforcement agencies in enhancing tax revenue.
The meeting specifically reviewed the introduction of a National Targeting System, designed to curb sales tax evasion. This system will utilize e-tags and digital devices to track vehicles transporting goods and will be bolstered by an e-Bilty mechanism issued through the FBR’s own system.
To further combat smuggling and enhance efficiency for commuters, digital monitoring systems are slated for installation at major highways and key city entry points.
Officials informed the meeting that a Customs Targeting System is also being introduced at ports and airports. This system aims to automate the monitoring of imports and exports, leveraging artificial intelligence and integrating with both domestic and international databases to effectively combat smuggling and tax fraud.
Furthermore, the officials briefed the meeting on plans to train FBR staff on these new systems and outlined a phased rollout, beginning with a pilot project in a major city.
Sectors such as cement, hatcheries, poultry feed, tobacco, and beverages will be brought under stricter sales tax surveillance. It was added that monitoring mechanisms similar to those successfully implemented in the sugar industry are being extended to the tobacco, beverage, steel, and cement sectors.
The Prime Minister explicitly directed that all these measures be implemented promptly, effectively, and in a sustainable manner to ensure lasting impact on Pakistan’s tax landscape.
