Hunting down tax dodgers with science, not guesswork

July 31, 2026

Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue to build a scientific method for measuring how much tax each sector of the economy can actually pay. This is a welcome step. For years, tax collection in Pakistan has relied on guesswork and old habits, leaving many sectors under taxed while honest taxpayers carried the burden.

The new system aims to fix this. It will help identify sectors where tax potential is being missed. It will also help find businesses and individuals working in the informal economy who avoid paying taxes altogether. The prime minister gave these directions during a meeting on FBR reforms held in Islamabad.

He asked officials to work closely with the power sector to trace hidden businesses and tax evaders. He also ordered legal action against anyone found guilty of evasion. This shows a firm commitment to enforcing the law rather than just talking about it.

There is real progress to point to already. For the first time in the country’s history, sugar production data now matches FBR records. The prime minister praised FBR Chairman Rashid Mahmood Langrial and his team for this achievement, and it is a sign that better monitoring is starting to pay off.

The plan does not stop at sugar. Digital tracking systems are being expanded to textile, beverages, steel, poultry, edible oil, ghee and tyre sectors by December. Tracking is already working in sugar, cement, tobacco, tiles and fertiliser. This kind of digital oversight makes it much harder for anyone to hide production and dodge taxes.

Alongside this, Shehbaz Sharif reviewed Pakistan’s digital vision, including plans for a national data centre and a single digital identity for citizens to access government services. Taken together, these reforms signal a government serious about modernising tax collection and public services, and that effort deserves genuine appreciation.