Prime Minister Shehbaz Sharif has directed a forensic audit of the Pakistan Revenue Automation Limited (PRAL) system through an international consultancy firm after being briefed on a past sales tax fraud linked to outdated infrastructure and weak monitoring.
Chairing a review meeting on Federal Board of Revenue (FBR) reforms on Thursday, the Prime Minister expressed strong displeasure over the revelation of the fraud, which occurred in 2018-19.Â
He instructed authorities to identify all companies, institutions, and individuals involved, and to submit a detailed investigation report within three weeks. He further ordered strict legal action against those found responsible.
Officials briefed the meeting on recent reforms within the FBR and PRAL, noting that the upgraded digital system now includes an Audit Vault, Database Protection Wall, Security Operations Centre, and continuous database monitoring to ensure data security. The new system records the user’s IP address during any data modification, effectively curbing opportunities for tax manipulation.
The meeting was informed that the fact-finding committee established by the Prime Minister earlier had concluded that the 2018-19 sales tax fraud stemmed from PRAL’s outdated system and lack of real-time monitoring. The FBR has since implemented corrective measures as part of a broader digital modernisation initiative.
Prime Minister Shehbaz commended the FBR team for its reform progress and for earning international recognition at the World Bank’s Annual Conference in Washington, where Pakistan’s reform case study was highlighted.
The meeting was attended by Federal Ministers Azam Nazeer Tarar, Muhammad Aurangzeb, Dr. Musadik Malik, Attaullah Tarar, Ali Pervaiz Malik, Bilal Azhar Kayani, the FBR Chairman, and senior officials from relevant departments.
