Prime Minister Shehbaz Sharif has ordered faster reforms at the Federal Board of Revenue (FBR) and indiscriminate action against corrupt officials. He said initial results were encouraging and urged officials to improve the institution’s capacity to address the tax gap.
Shehbaz chaired a weekly review meeting on Monday to assess progress in FBR reforms. Officials briefed the meeting on changes involving technology, operational systems and workforce development.
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The prime minister stressed technology, effective training, transparency and accountability to make reforms deliver results. He also directed officials to accelerate the introduction of a faceless system in tax collection departments.
Shehbaz said FBR officers must improve their performance to meet public expectations. He added that the government would continue reforms in the broader interests of the state.
The prime minister ordered action against corrupt officials without discrimination. He said officials who improve their conduct and performance should receive an opportunity to reform. However, he warned that the institution would have no place for those who continue corruption or perform poorly.
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Officials reported that reforms had reduced Pakistan’s estimated tax gap from 6% to 5% of gross domestic product over three years. They also said technology had significantly reduced the discretionary powers of FBR officers.
The meeting heard that new FBR officers were receiving training at the Lahore University of Management Sciences (LUMS), alongside ongoing training for serving officials. A peer-rating system now evaluates officers’ performance, while 957 auditors hired on merit as third-party contractors have increased audit capacity fourfold. Officials also reported ongoing technical restructuring, specialist recruitment and performance-linked incentives.