PM approves reform plan to overhaul tax dispute system

Prime Minister Shehbaz Sharif has approved a reform plan aimed at restructuring Pakistan’s tax litigation system after reviewing recommendations presented by a government task force constituted to improve dispute resolution and accountability.

The proposals were presented during a high-level meeting on Federal Board of Revenue reforms by Shad Muhammad Khan, chairman of the 10-member Prime Minister’s Task Force on Tax Litigation Framework.

The reform package includes establishment of case scrutiny committees, development of a Centralised Litigation Management System and linking performance evaluations of tax officials, including commissioners, with outcomes of tax cases.

The task force was formed in March 2026 with a mandate to redesign the tax dispute framework and speed up disposal of pending cases.

Officials briefing the meeting said the digital Centralised Litigation Management System would be designed to organise and monitor tax litigation data, improve case tracking and strengthen follow-up mechanisms.

According to officials, decisions through the alternative dispute resolution forum have so far helped recover Rs2.4 billion for the national treasury during the current year.

The six-point reform strategy focuses on improving accountability, digitising case management, strengthening oversight and reducing delays in adjudication of tax disputes.

Prime Minister Shehbaz Sharif directed officials to implement the plan within defined timelines and emphasised the need to strengthen the alternative dispute resolution mechanism to reduce pressure on courts and accelerate settlement of tax cases.

He also directed authorities to establish the Centralised Litigation Management System at the earliest and ensure merit-based hiring in the Federal Board of Revenue’s legal wing.

The meeting was attended by Law and Justice Minister Azam Nazeer Tarar, Minister for Climate Change Musaddik Malik, Economic Affairs Minister Ahad Cheema, Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Attorney General for Pakistan Mansoor Awan, Minister of State for Finance Bilal Azhar Kiani and members of the task force.