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PM directs timely implementation of tax reforms, third party audit of reforms process,

Islamabad: Prime Minister (PM) Muhammad Shehbaz Sharif has directed the authorities concerned to complete implementation of FBR reforms within stipulated timeframe, ensure third party audit of reforms process and speed up campaign against tax evasion, smuggling and illegal business.

Basic reforms are being implemented in tax system for national development and robust economy. Digitalization, monitoring production and automation are vital pillars of FBR reforms.

He issued these directives while presiding over a weekly review meeting in Islamabad on the reforms process in the Federal Board of Revenue .

During the meeting, the Prime Minister was briefed on the restructuring of PRAL.

Officials said work was progressing on IRIS 3.0, a new tax operating model and a Central Data Hub to make the tax system integrated, modern and data-driven. International consultants have been hired for the design of IRIS 3.0, while new senior leadership has been appointed at PRAL in technology, data security, operations and tax-related fields. Work is also underway to pilot automated taxation and eventually use artificial intelligence and machine learning to improve revenue collection.

The meeting was told that faceless customs assessment had produced positive results, with average revenue per goods declaration rising 12% between January and June 2026. Recruitment of 280 goods evaluators is nearing completion. A Central Assessment Unit in Islamabad is targeted for interim operation by December 31, 2026, with a fully integrated facility planned by June 2027.

Digital invoicing transactions rose from Rs236 billion in July 2025 to more than Rs2.5 trillion in July 2026, with a Rs4 trillion target set for December.

To combat petroleum smuggling, authorities have completed GIS tagging of legal petrol pumps, GPS tracking of petroleum products, ERP-tracker integration for oil marketing companies and a central tracking app.

The meeting was told that 2,500 illegal petrol pumps, of the Rah-e-Guzar app have been got shut down and legal proceedings have been initiated against them.

Work on the digital monitoring of sale of petroleum products and other measures is underway.