PM directs launch of AI-driven tax system pilot in Islamabad

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Thursday emphasised the need to modernise Pakistan's tax administration through technology-driven solutions, greater transparency and reduced human intervention, and directed the authorities to launch the pilot phase of an AI-driven automated tax system in the federal capital.

The prime minister chaired a high-level review meeting on reforms in the Federal Board of Revenue (FBR) and reviewed the government's ongoing measures aimed at modernising the tax system and increasing revenue collection. A comprehensive plan was presented to make Inland Revenue collections more efficient, transparent and fully faceless, according to a Prime Minister's Office news release.

Addressing the meeting, the prime minister said the proposed automated tax management system, based on the effective use of modern technology, would be a major step forward in the government's reform agenda. He stressed that minimising human intervention and discretionary powers in tax collection was essential for ensuring transparency and strengthening public confidence in the tax system.

“The implementation of this system will not only enhance tax revenues but will also promote transparency, fairness and confidence in the tax regime,” the prime minister said.

Shehbaz Sharif reiterated the government's commitment to continuing FBR reforms to document the economy and broaden the tax base. He directed that the pilot phase of the automated income tax collection system be launched in Islamabad before its rollout across the country.

The meeting was informed that the proposed system would be capable of identifying underreported income and undisclosed assets through the integration and analysis of data relating to properties, vehicles and banking transactions. Officials said modern technologies, including Artificial Intelligence (AI), would be used to make tax administration more automated, transparent and efficient.

According to the briefing, the proposed framework includes the establishment of a National Faceless Audit Wing, a National Assessment Wing and a Field Operations Wing to improve operational efficiency and strengthen compliance mechanisms.

The prime minister also appreciated the efforts of provincial governments to curb the illegal cigarette trade. Officials informed the meeting that enforcement measures in the tobacco sector were expected to generate an additional ₨40 billion in tax revenues during the current fiscal year.

The meeting was attended by Federal Ministers Rana Tanveer Hussain, Azam Nazeer Tarar, Musadik Masood Malik, Ahsan Iqbal, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar, Shaza Fatima Khawaja and Ali Pervaiz Malik, Minister of State for Finance Bilal Azhar Kayani, Attorney General Mansoor Usman Awan, Special Assistant Haroon Akhtar and senior government officials.