ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to launch a pilot phase of an Artificial Intelligence (AI)-powered tax administration system in Islamabad, marking a significant step toward modernizing Pakistan’s tax collection framework.
The directive was issued during a high-level meeting on FBR reforms, where officials briefed the prime minister on plans to introduce a technology-driven, largely faceless tax administration system aimed at improving transparency, efficiency, and compliance.
Chairing the meeting, Prime Minister Shehbaz emphasized the need to reduce human intervention and discretionary powers in tax administration to strengthen public confidence in the tax system.
He stated that the AI-based framework would not only help increase tax revenues but also promote transparency, fairness, and trust in the country’s taxation regime.
According to officials, the proposed system will integrate data from multiple sources, including property records, vehicle ownership information, and banking transactions. By leveraging artificial intelligence and advanced analytics, tax authorities will be able to identify underreported income, detect concealed assets, and improve compliance monitoring.
The automated framework is expected to streamline tax administration processes while minimizing opportunities for tax evasion and corruption.
As part of the reform plan, authorities are considering the establishment of a National Faceless Audit Wing, a National Assessment Wing, and a Field Operations Wing to enhance oversight, accountability, and operational efficiency within the FBR.
Prime Minister Shehbaz directed officials to begin implementation in Islamabad before expanding the AI-driven system to other parts of the country.
During the meeting, participants were also briefed on ongoing enforcement actions against the illegal cigarette trade. Officials informed the prime minister that anti-smuggling and enforcement measures in the tobacco sector are expected to generate an additional Rs40 billion in tax revenues during the current fiscal year.
The prime minister praised provincial governments for supporting enforcement efforts and reaffirmed the government’s commitment to broadening the tax base, documenting the economy, and introducing modern technologies to improve revenue administration.
The meeting was attended by senior federal ministers, government officials, and key stakeholders involved in tax reform and economic policymaking.
