PM orders fast-track crackdown on over-invoicing, launches fresh probe into institutional failures

Prime Minister Shehbaz Sharif on Wednesday ordered expedited legal action against individuals involved in over-invoicing, calling it a “heinous practice” that persisted from 2017 to 2022 amid what he described as sustained institutional negligence.

The directive came during a weekly review meeting on the affairs of the Federal Board of Revenue, where officials briefed the prime minister on the findings of a committee probing the scale and mechanics of over-invoicing.

According to the briefing, the practice had first been identified by the FBR’s Post Clearance Audit Wing in October 2022, with enforcement actions now progressing in parallel through the legal system.

So far, 13 FIRs have been registered, while further investigations remain underway.

PM Shehbaz said relevant institutions failed to discharge their responsibilities over several years, allowing the malpractice to continue unchecked. He stressed that tax revenues are a “national trust” and insisted the government must ensure accountability “for every single penny.”

A committee headed by Ahmed Sukhera presented its findings, which were formally appreciated by the prime minister. On the basis of its report, he ordered the formation of a new investigative body under Shahid Khan, tasked with identifying officials and institutions responsible for negligence and initiating departmental proceedings. The committee has been directed to submit its report at the earliest.

In parallel, the prime minister instructed authorities to develop a broader preventive framework to curb recurrence of over-invoicing practices in the future.

Institutional reforms were also placed on the agenda. The prime minister ordered that the Financial Monitoring Unit be made fully functional and strengthened through the inclusion of representatives from the Federal Investigation Agency and the Intelligence Bureau.

Officials further informed the meeting that the FBR has developed a Centralised Price Verification Portal, which is scheduled for integration with banks by the end of June, aimed at improving price tracking and transactional oversight.

The review meeting was attended by federal ministers Musadik Masood Malik, Ahad Khan Cheema, Attaullah Tarar, Attorney General Mansoor Usman Awan, Minister of State for Finance Bilal Azhar Kayani, the FBR chairman, and senior officials.