PM orders automated monitoring of key sectors to curb tax evasion

Prime Minister Shehbaz Sharif on Tuesday directed authorities to strengthen tax enforcement through technology-based monitoring of major production sectors, aiming to reduce tax evasion and increase government revenue.

The directive was issued during a weekly review meeting on Federal Board of Revenue (FBR) affairs, where the prime minister emphasised the expanded use of automated systems to improve transparency and compliance.

He welcomed the induction of experts into the executive team of Pakistan Revenue Automation Limited (PRAL) and said the organisation should play an active role in monitoring tax systems and compliance.

“The use of technology must be maximised to ensure transparency, accountability and revenue growth,” he said.

During the meeting, officials briefed the prime minister on ongoing efforts to introduce technology-driven monitoring systems across multiple sectors.

They said production monitoring systems are already operational in sugar, cement, cigarette and fertilizer factories, using tools such as video analytics, barcode scanning, stamping, unit counting and serialization. 

According to officials, the early implementation of these systems has already contributed to increased tax collection.

Authorities are also extending similar monitoring measures to textile, leather, paper, automobile and beverage sectors, which officials expect could generate additional revenue worth billions of rupees.

The meeting was informed that the digital invoicing system is now operational, processing transactions worth Rs800 billion during January and February.

Officials said the government aims to achieve Rs3 trillion in digital invoicing by April.

The prime minister also directed that key taxpayer platforms — including the auto tax system, digital invoicing platform and IRIS system — be made available in Urdu and regional languages to improve accessibility and encourage greater participation.

Sharif further instructed the Drug Regulatory Authority of Pakistan (DRAP) to accelerate the serialization of domestically manufactured medicines.

Officials said amendments to the law governing Alternate Dispute Resolution Committees (ADRCs) have been introduced to enhance transparency and improve taxpayer confidence.

The government expects Rs80 billion in revenue collection through ADRCs by June 30, 2026.

Between July 2025 and January 2026, FBR rulings in tax cases generated Rs102.9 billion, while pending cases are expected to yield an additional Rs369 billion by June 2026, according to officials.

The meeting was also informed that the FBR’s new data centre has been completed, and that authorities have introduced a digital cargo tracking system, including the e-Bilty platform, to help curb smuggling. An integrated GPS tracking system for petroleum products has also been implemented.

The meeting was attended by several federal ministers, senior government officials and the FBR chairman.