FBR to Launch IRIS 3.0: A Major Step Toward Digital Tax Transformation

The Federal Board of Revenue (FBR) is preparing to roll out IRIS 3.0, a next-generation digital tax platform designed to simplify tax return filing through pre-filled data, automated workflows, and an improved user experience.

The announcement came during a World Bank-hosted meeting in Washington, D.C., where Pakistan’s tax transformation was showcased as a global case study in public sector reform. The meeting was attended by Finance Minister Muhammad Aurangzeb, FBR Chairman Rashid Mahmood Langrial, and senior government officials.

In his address, the Finance Minister highlighted Pakistan’s comprehensive reform agenda—a homegrown initiative under the direct supervision of the Prime Minister—focused on overhauling people, processes, and technology to strengthen revenue administration and promote economic stability.

He noted that these reforms have already produced early wins, reflected in improved tax administration and macroeconomic indicators. Chairman FBR Rashid Mahmood Langrial added that Pakistan’s tax-to-GDP ratio jumped from 8.83% in FY2023–24 to 10.33% in FY2024–25, the largest annual increase in over 20 years. This progress, he said, stems from a data-driven, transparent, and efficiency-focused strategy.

The FBR’s reform journey began with an eight-week planning sprint in 2024, incorporating insights from field officers nationwide and guided by a dedicated Delivery Unit. Unlike previous fragmented efforts, this transformation enjoys full political and institutional backing, ensuring alignment between governance, policy, and technology.

IRIS 3.0 aims to make tax compliance seamless for individuals and businesses by introducing pre-filled forms, end-to-end automation, and intuitive digital workflows. Officials emphasized that technology is only one pillar—true transformation depends equally on organizational restructuring, process redesign, and staff empowerment.

Delegates and development partners praised Pakistan’s reform model. Egypt’s Finance Minister Ahmed Kouchouk called it a benchmark for developing nations, while World Bank Regional Director Sandeep Mahajan described it as a “blueprint for effective revenue administration.”

The discussion concluded with broad recognition of Pakistan’s achievements and four core lessons: homegrown planning, political ownership, empowered delivery structures, and integrated digital systems.

With IRIS 3.0 on the horizon, Pakistan is poised to further enhance tax compliance, transparency, and ease of doing business, positioning the FBR as a citizen-centric and digitally advanced tax authority.