The Federal Board of Revenue (FBR) has announced substantial progress in Pakistan’s tax administration, attributing significant improvements to the ongoing digitalization initiatives designed to streamline operations, enhance compliance, and improve taxpayer services across the country. The authority emphasized that the digital transformation is reshaping the tax landscape, making it more transparent, efficient, and user-centric.
Central to this modernization effort is the Directorate General of Information Technology & Digitalization (DG IT&D), which has spearheaded an extensive revamp of core tax processes. Through the Service Design and User Experience (UX) program, the FBR conducted in-depth research to understand taxpayer challenges and requirements. Insights from this research have been instrumental in redesigning the income tax registration and return filing processes, ensuring they are simpler, faster, and more intuitive for individual and corporate taxpayers alike.
In a major step to improve real-time assistance, FBR has introduced a taxpayer facilitation Chatbot. This AI-powered tool provides instant responses to queries, helping taxpayers navigate compliance requirements more effectively. In addition, automated system alerts, SMS notifications, and emails have been implemented to keep taxpayers updated on filing deadlines, due payments, and other regulatory obligations.
The FBR is also modernizing its audit and risk management procedures. Automated risk management and audit selection modules are under development to ensure audits are conducted with transparency, precision, and efficiency. Advanced monitoring tools, such as the Digital Eye technology, have already been deployed in sectors like textiles, cement, and beverages, allowing the FBR to oversee production volumes and reduce tax leakage. Work is underway to introduce a comprehensive digital invoicing and inventory management system that will enable real-time reporting of business transactions, thereby improving the accuracy of tax assessments.
Data security and governance remain a top priority within these digital reforms. The DG IT&D is formulating a robust Data Governance and Security Policy to ensure taxpayer information remains confidential and protected against potential breaches. Integration of databases across government departments is also being pursued to eliminate data silos, facilitate cross-verification, and enhance overall data reliability.
Additionally, infrastructure upgrades are being implemented to support these initiatives. Outdated hardware in field offices and data centers is being replaced with state-of-the-art equipment, while a new three-tier data center with 24/7 availability and advanced security protocols is under development. This investment ensures reliable system performance, seamless user experiences, and continuous operation of digital tax systems.
FBR’s digitalization efforts, including the Track & Trace system rolled out across sugar, cement, beverages, tobacco, and petroleum sectors, are projected to significantly reduce tax evasion while enhancing compliance. These initiatives represent a major milestone in Pakistan’s ongoing efforts to modernize public-sector taxation, improve transparency, and support a robust, digitally-enabled economic ecosystem.
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