The Economic Coordination Committee (ECC) of the Cabinet has approved the restructuring plan for Pakistan Revenue Automation Limited (PRAL), allocating Rs3.7 billion for the current fiscal year 2024-25, with an additional Rs4.5 billion proposed for the next financial year, subject to performance evaluation.
According to a news report, the restructuring plan includes appointing an independent board, enhancing software development capabilities, upgrading hardware infrastructure, establishing a data analytics hub, and streamlining procurement processes.
PRAL is a critical IT subsidiary supporting revenue automation, data integration, and tax digitization for the Federal Board of Revenue (FBR). Despite its significant role in improving the tax-to-GDP ratio, PRAL has struggled to keep pace with modern technological advancements and operational efficiency.
A task force within the FBR identified governance issues, weak talent capacity, and outdated technology as primary challenges requiring immediate resolution.
Under the proposed restructuring, PRAL’s financial flows and budgeting mechanisms will also be streamlined. A separate cost center will be reflected under the Revenue Division, with regular budgetary grants categorized as either Employee-Related Expenditure (ERE) or Non-ERE grants.
The PRAL Board will be responsible for approving the annual budget based on these grants and any internally generated revenues.
The ECC was informed that PRAL requires Rs3.7 billion as a technical supplementary grant (TSG) for FY2024-25 and Rs4.5 billion annually from FY2025-26 onwards to sustain the restructured entity.
Currently, PRAL receives Rs1 billion annually, necessitating an additional Rs3.5 billion for future financial years.
During the discussion, the committee emphasized that the performance of PRAL would be assessed annually against Key Performance Indicators (KPIs) focused on quantitative outcomes.
It was noted that PRAL’s reconstituted board aims to enhance operational efficiency and boost revenue collection.
