PM directs FBR to develop a scientific method to assess tax potential to increase revenue

Prime Minister Shehbaz Sharif on Wednesday directed the Federal Board of Revenue (FBR) to develop a comprehensive and scientific methodology to assess the tax potential across various sectors with the aim of enhancing revenue generation and improving tax administration, according to a statement issued by the Prime Minister’s Office (PMO).

Chairing a weekly review meeting on FBR reforms, the prime minister directed the authorities to work with the power sector to identify companies and individuals involved in the informal economy and tax evasion and initiate legal proceedings against them.

He said that for the first time in Pakistan’s history, sugar industry production data matched FBR records, calling it a clear proof that FBR’s tracking system was working effectively, and praised FBR Chairman Rashid Mahmood Langrial and his team for their efforts.

Prime Minister Shehbaz also praised taxpayers and companies that complied with tax laws, calling them “a valuable national asset”.

He said the government had extended as much relief as possible to both export-oriented and domestic industries on taxation and would continue to do so.

The Prime Minister directed FBR Chairman and senior officials to spend the first week of every month in Karachi to hear and address the concerns of the business community.

He also ordered that the digital production monitoring system for the textile, beverage, steel, poultry, edible oil and ghee and tire sectors be made operational by December and reiterated that appointments and transfers within the FBR would be made purely on merit.

Calling the new civil service evaluation system commendable, Prime Minister Shehbaz said merit and transparency would remain the government’s top priorities. He directed the authorities to prepare a list of high performing officers so that they could be recognized with awards on Independence Day.

The Prime Minister further ordered an immediate third-party audit and validation of customs warehouses to identify and remedy any irregularities.

During the briefing, officials updated the meeting on the installation of production tracking systems, human resource reforms and measures to improve FBR’s operational capacity.

Read more: Prime Minister leads faster implementation of government’s right-size reforms

They said tracking systems were already fully operational in the sugar, cement, tobacco, tiles and fertilizer sectors, while implementation in five more sectors representing a tax potential of more than Rs700 billion was in its final phase.

The meeting was informed that work was also underway with industry stakeholders to implement tracking systems across nine manufacturing sectors, unlocking an estimated Rs560 billion in additional tax potential. The Prime Minister directed that the implementation of indirect tax tracking across the manufacturing sector should be completed by the end of the year.

Officials said newly recruited officers received training at one of Pakistan’s leading universities under programs designed around merit and performance, while serving officers were also undergoing training. The modules had been adapted to international standards and the requirements of Pakistan’s tax system.

The meeting was told that after the introduction of peer review and evaluation mechanisms, officials with a strong professional reputation were appointed to important customs and revenue posts. A new system had also been introduced to reward high-performing officers and punish poor performers.

Officials said 957 third-party auditors had been appointed to enhance transparency, while recruitment of 280 goods appraisers under the faceless appraisal system of customs was underway on the basis of merit and transparency.

The meeting was further informed that a case management committee was being set up to reduce unnecessary tax cases by deciding whether tax related cases should be continued. Under the framework of Alternative Dispute Resolution Committees (ADRCs), 152 out of 377 applications had been resolved within 90 days by June 2026, resulting in the recovery of Rs54 billion in tax revenue.

According to the PMO, Prime Minister Shehbaz also chaired a meeting to review the implementation of the National Integrated Digital Policy Framework and ordered immediate measures to make the newly established Sky47 AI National Central Data Center available to all federal government institutions.

He said citizens would be able to access government document verification, banking, healthcare, transfers and other public services through a single digital identity once Pakistan’s National Digital Vision was fully implemented,

The Prime Minister said a single national data center would provide a central repository for data held by federal institutions, eliminating the need for separate data centers and resulting in savings on public resources.

“The Pakistan Digital Authority sets an active, effective and transformative direction for public services, the social system and in particular the delivery of citizen services,” he said.

Prime Minister Shehbaz said that implementing the National Digital Vision in line with modern requirements was the key to building an integrated society, adding that the work under its three pillars – the digital economy, digital citizen services and digital public services – was commendable.

He said effective implementation of the National Digital Policy would strengthen global partnerships and ensure Pakistan’s effective representation in international forums, while consultation with all relevant institutions and the federal and provincial governments would bring decision-making, institutional performance and transparency in line with international standards.

The Prime Minister directed that the National Digital Vision should be implemented first in health, agriculture, utilities, housing and small and medium enterprises (SMEs) to ensure citizens get improved services as soon as possible, the PMO added.

He said that once fully implemented, citizens will be able to access a range of public services through a single digital identity, including government document verification, banking, healthcare, transfers and other public services.

Read: PM Shehbaz inaugurates Sky47 AI data center, calls it a step towards a ‘forward-looking Pakistan’

According to the statement, Prime Minister Shehbaz also ordered that a meeting of the National Digital Commission be convened soon to take all stakeholders, including the provinces, into confidence on the policy. Established under the Digital Nation Pakistan Act 2025, the commission is chaired by the Prime Minister and includes all provincial chief ministers as members.

Officials told the meeting that implementation of the digital vision was already underway in agriculture, food, health, energy, housing and SMEs, while work had begun in 14 additional priority sectors in line with the Prime Minister’s directions to improve sector performance and support economic, industrial and commercial growth.

The PMO said the meeting was informed that implementation in the housing sector would introduce a single central identification number for all public and private properties, while the SME component would establish an integrated system of unique legal corporate identities that would help boost economic output.

Officials added that legal, administrative and institutional measures required for full implementation were being completed at a pace that draws on international expertise and global best practices.