ISLAMABAD (special crosspondent) – Prime Minister Muhammad Shehbaz Sharif on Wednesday issued directives to relevant authorities to identify and initiate rigorous legal proceedings against individuals and businesses engaged in the informal economy and systemic tax evasion. The instruction came as he chaired a weekly review meeting focused on sweeping reforms within the Federal Board of Revenue (FBR).

Highlighting a significant milestone in national fiscal management, the Prime Minister noted that the successful alignment between sugar production data and FBR records demonstrates the effectiveness of the board’s newly installed tracking systems. He lauded the Chairman FBR and his team for this progress, emphasizing that compliant taxpayers remain vital national assets worthy of state recognition. In line with the government’s commitment to growth, the Prime Minister Shehbaz Sharif Prioritizes Youth Employment and Digital Training to ensure sustainable economic development.

Expanding Digital Oversight and Enforcement

The Prime Minister mandated that a comprehensive digital production monitoring system be operational by December across several key industries, including textile, beverages, steel, poultry, edible oil, ghee, and the tyre sector. Currently, the tracking infrastructure is fully functional in the sugar, cement, tobacco, tiles, and fertilizer sectors. Officials briefed the meeting that implementation is in final stages for five additional sectors, which hold an estimated tax potential of over Rs 700 billion. Furthermore, efforts are underway to integrate tracking systems across nine other manufacturing sectors, targeting an additional Rs 560 billion in revenue.

Merit-Based Governance and Human Resource Reforms

Addressing internal governance, the Prime Minister asserted that all FBR appointments and transfers will strictly adhere to merit. He praised the newly introduced performance evaluation system and requested a list of high-performing officers for recognition on Independence Day. To bolster transparency, 957 third-party auditors have been appointed, and the recruitment of 280 Goods Evaluators under the Customs faceless system is progressing. The Prime Minister specifically instructed that an immediate third-party audit be conducted to identify irregularities within Customs bonded warehouses.

Support for Business and Dispute Resolution

To foster better relations with the private sector, the Prime Minister directed the Chairman FBR and senior officials to maintain a monthly presence in Karachi to resolve business community grievances promptly. The meeting also reviewed the efficacy of Alternative Dispute Resolution Committees (ADRCs), noting that 152 out of 377 applications filed up to June 2026 were resolved within 90 days, yielding PKR 54 billion in recovered tax revenue. Additionally, a new Case Scrutiny Committee is being established to curtail unnecessary tax litigation and ensure that only merit-based cases proceed to legal forums.