Pakistan’s tax administration may be entering a more data-driven phase. The Prime Minister has directed the Federal Board of Revenue to develop a scientific, sector-wise method for measuring the country’s actual tax potential. Data from the power sector and other institutions is expected to be used to identify businesses and individuals operating outside the documented economy.
Digital production monitoring is also being expanded rapidly. Tracking systems are already operational in the sugar, cement, tobacco, tiles and fertilizer sectors, while textile, beverages, steel, poultry, edible oil and ghee, and tyre businesses have been targeted for implementation by December 2026. Five sectors under implementation reportedly represent tax potential exceeding Rs 700 billion, while work in nine additional sectors could unlock a further Rs 560 billion.
The reforms are not limited to technology. Senior FBR officials have been directed to spend the first week of every month in Karachi to address business concerns, while bonded warehouses will undergo third-party validation. The government has also highlighted merit-based appointments, the engagement of 957 third-party auditors, recruitment of 280 Customs goods evaluators and greater use of case scrutiny and Alternative Dispute Resolution to reduce unnecessary tax litigation.