Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue to sustain and intensify enforcement action against smuggling, tax evasion and illegal businesses across the country while accelerating the pace of ongoing reforms at the tax authority. The prime minister issued the directives while chairing a review meeting on FBR reforms on August 10, where he also took stock of enforcement activities, tax administration measures, digitisation initiatives and engagement with the business community. He said stronger enforcement would be necessary to help the FBR achieve its prescribed revenue target while ensuring that reforms at the tax authority continue to move forward.
During the meeting, the prime minister noted growing confidence among members of the business community in the FBR reform process and directed the Chairman FBR and senior officers to spend two days every month in Lahore, in addition to their existing monthly presence in Karachi. The arrangement is intended to increase engagement between senior FBR officials and business representatives in major commercial centres. Shehbaz Sharif stressed the need for enforcement measures to be stepped up so that the tax authority can meet its revenue collection objectives while addressing activities that contribute to tax losses and undermine compliant businesses.
The prime minister also commended the FBR’s recent enforcement operations against illegal cigarette manufacturing units in Chakwal and Swabi. He directed the tax authority to ensure that officers with good reputations and demonstrated integrity are posted to sensitive positions and departments within the organisation. The directive places particular emphasis on the quality and credibility of personnel working in areas where officials are responsible for enforcement, tax administration and other sensitive functions. The government is seeking to strengthen public and business confidence in the tax system as part of the wider reform process.
Shehbaz Sharif further directed the FBR to complete the proposed Faceless System for Inland Revenue on a timely basis and ensure its full rollout by 2027. The meeting was informed that the first phase of the Faceless Inland Revenue System is scheduled to become operational from October 1. The system forms part of the FBR’s wider technology-driven digitisation programme and is intended to introduce greater use of artificial intelligence and digital processes into tax administration. The new system will separate taxpayers from the geographical jurisdiction of individual tax officers by assigning cases through a randomised mechanism.
The Faceless Inland Revenue System will include a National Faceless Audit Wing responsible for tax return audits and a Faceless Assessment Unit responsible for tax assessments. Under the proposed arrangement, case jurisdiction will be assigned randomly regardless of geographical boundaries. The move is intended to change the way audits and assessments are handled by reducing direct geographical links between taxpayers and the officials dealing with their cases. The first phase is scheduled for October 1, while the government has set 2027 as the target for full implementation of the system.
The Chairman FBR also briefed the prime minister on his monthly stay in Karachi during the first week of each month, following an earlier directive. During these visits, the chairman met representatives of seven major trade bodies and listened to their concerns regarding tax administration and business-related issues. According to the briefing, issues raised by the business community during these meetings were addressed promptly. The regular interaction is part of the FBR’s effort to maintain direct engagement with businesses and obtain feedback on the practical impact of tax policies and administrative procedures.
The meeting was also informed that the FBR is putting in place time-bound Standard Operating Procedures for the payment of tax refunds to exporters. The move is aimed at establishing clearer timelines for refund processing and addressing concerns raised by exporters regarding delays. The Chairman FBR also briefed the prime minister on intelligence-based operations conducted against illegal cigarette manufacturing facilities in Chakwal and Swabi. Both facilities were sealed during the operations, while stocks of illegally manufactured cigarettes and machinery were seized by the authorities.
The government’s latest directives come as the FBR continues to pursue reforms aimed at strengthening revenue collection, improving tax administration and increasing the use of technology in the tax system. Alongside action against smuggling, tax evasion and illegal businesses, the reform agenda includes digitisation of Inland Revenue operations, the introduction of the Faceless System, improved engagement with businesses and measures to make tax refunds more timely. The prime minister’s instructions indicate that enforcement and administrative reforms are being pursued simultaneously as the government seeks to improve the performance of the tax authority.
Federal Ministers Azam Nazeer Tarar, Dr. Musadik Masood Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar and Shaza Fatima Khawaja, Special Assistant Haroon Akhtar, State Bank Governor Jameel Ahmad and senior officials from relevant institutions attended the review meeting. The participation of senior officials from the finance and economic institutions reflects the broader government focus on improving tax collection, strengthening enforcement and supporting the ongoing reform process at the Federal Board of Revenue.
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