The International Monetary Fund (IMF) has raised serious concerns over governance lapses at Pakistan Revenue Automation Limited (PRAL), warning that the Federal Board of Revenue’s data arm is hiring staff and outsourcing critical functions without a legally required conflict-of-interest policy, The Express Tribune reported.
The observations appear in the IMF’s Governance and Corruption Diagnostic Assessment, released last week. According to the IMF, PRAL has not developed a code of conduct or conflict-of-interest rules despite legal obligations. The lender said this omission is particularly troubling at a time when PRAL is recruiting staff on market-based salaries and relying on third parties to carry out some of its core technology functions.
Government sources said a meeting held at the Prime Minister’s Office on Friday discussed how to respond to the IMF’s remarks in parliament and the media. One proposal under consideration is for Minister of State for Finance Bilal Azhar Kayani to present the government’s position.
The IMF assessment underscores longstanding management challenges at PRAL, which continues to operate on an ad hoc basis while FBR board members intervene directly in operational matters. The government has yet to appoint a permanent chief executive officer for the organisation.
The report further noted that PRAL lacks a structured approach to risk management. It does not maintain a risk register, nor does it systematically review transaction logs to identify potential vulnerabilities. Logs are only examined after issues are reported, which the IMF says leaves data systems exposed.
The Fund stressed that effective oversight of PRAL is essential given its central role in FBR’s data management. Although mechanisms such as weekly project meetings and service-level agreements exist, the IMF said FBR must ensure PRAL is consistently operating within its mandate and meeting all regulatory requirements.
