PM Shehbaz orders scientific system to assess tax potential

Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to develop a scientific and comprehensive method to assess tax potential in different sectors of the economy.

The new system is aimed at improving tax collection. It will also help identify sectors with untapped revenue potential. The government wants to strengthen tax administration and reduce tax evasion.

The prime minister issued the directives during a meeting on FBR reforms in Islamabad on Wednesday.

He directed the FBR to work with the power sector to identify businesses and individuals involved in the informal economy. Authorities will also identify those suspected of avoiding taxes.

Shehbaz instructed officials to take legal action against people and businesses found involved in tax evasion.

The prime minister said improvements in the FBR’s monitoring system were already producing results. He pointed out that sugar production data had matched FBR records for the first time in Pakistan’s history.

He described the development as an important sign of improved monitoring and tracking.

Shehbaz praised FBR Chairman Rashid Mahmood Langrial and his team for their efforts. He also appreciated taxpayers and businesses that were following tax laws.

The prime minister said the government had provided maximum possible support to export-oriented and domestic industries. He said the government would continue facilitating businesses while ensuring compliance with tax regulations.

He directed the FBR chairman and senior officials to spend the first week of every month in Karachi. They will meet business representatives and address their concerns.

Shehbaz also ordered the expansion of digital production monitoring.

He directed officials to make tracking systems operational in the textile, beverages, steel, poultry, edible oil and ghee, and tyre sectors by December.

He also stressed that appointments and transfers within the FBR must be made strictly on merit.

The prime minister praised the new system for evaluating officers. He said merit and transparency must remain central to FBR reforms.

He directed authorities to prepare a list of high-performing officers. The best-performing officials will be considered for awards on Independence Day.

Shehbaz also ordered an immediate third-party audit of customs bonded warehouses.

The audit will examine the warehouses and identify possible irregularities. Officials will then be required to take corrective measures where necessary.

The meeting was informed about progress on production tracking systems and human resource reforms.

Officials said tracking systems were already fully operational in the sugar, cement, tobacco, tiles and fertiliser sectors.

Work in five additional sectors was also nearing completion. These sectors have an estimated tax potential of more than Rs700 billion.

Officials said tracking systems were also being developed for nine other production sectors.

These sectors are estimated to have an additional tax potential of around Rs560 billion.

The prime minister directed authorities to complete indirect tax tracking across the production sector by the end of the year.

The meeting also reviewed reforms in the FBR’s workforce.

Newly recruited officers are receiving specialised training. Existing officers are also undergoing training.

The programmes have been designed around merit and performance. Officials said the training modules were aligned with international standards and Pakistan’s tax requirements.

A new performance evaluation system has also been introduced.

Under the system, high-performing officers can receive recognition. Officials who fail to meet performance standards can face penalties.

The government has also appointed 957 third-party auditors. The move is intended to improve transparency and strengthen tax-related processes.

Recruitment of 280 goods evaluators is also under way. The evaluators will work under the customs faceless assessment system.

The meeting also discussed measures to reduce unnecessary tax disputes.

A Case Scrutiny Committee is being established for this purpose. The committee will determine whether tax cases should proceed based on their merits.

Officials also provided an update on Alternative Dispute Resolution Committees.

By June 2026, 152 out of 377 applications had been resolved within 90 days. The process resulted in the recovery of Rs54 billion in tax revenue.

Digital reforms also reviewed

Prime Minister Shehbaz Sharif separately reviewed progress on the national digital vision.

He ordered immediate measures to make the newly established Sky47 AI national central data centre available to federal government institutions.

The prime minister said the initiative would help modernise government services.

He said citizens would eventually be able to use a single digital identity to access multiple public services.

These services could include government document verification, banking, healthcare and transfers.

The prime minister said a central national data centre would bring information from federal institutions together.

He said this would reduce the need for separate data centres. It could also help save public resources.

Shehbaz said the national digital vision was important for building a more integrated society.

He highlighted three key areas of the programme. These include the digital economy, digital citizen services and digital government services.

He directed authorities to initially focus on health, agriculture, utilities, housing and small and medium-sized enterprises.

The aim is to ensure that citizens begin receiving improved digital services as quickly as possible.

Officials said digital implementation was already under way in agriculture, food, health, energy, housing and SMEs.

Work has also started in 14 additional priority sectors.

The housing component will introduce a central identification number for public and private properties.

The SME component will create an integrated system of unique legal identities for businesses.

The government believes these measures can improve transparency and economic activity.

Shehbaz also ordered an early meeting of the National Digital Commission.

The meeting will include key stakeholders. Provincial governments will also be consulted.

The commission was established under the Digital Nation Pakistan Act 2025. It is chaired by the prime minister and includes the chief ministers of all provinces.

The prime minister said consultation with federal and provincial institutions was essential for effective implementation.

He also stressed the importance of international standards and global best practices.