ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday ordered a forensic audit and fresh investigations into a multibillion-rupee sales-tax fraud linked to the Federal Board of Revenue’s (FBR) automation system, directing officials to identify those involved and report within three weeks.
According to the Prime Minister’s Office, a fact-finding committee had been formed to investigate a large-scale sales-tax fraud that began in 2018-19.
The committee concluded the fraud was made possible due to Pakistan Revenue Automation Limited’s (PRAL) outdated digital infrastructure, lack of monitoring and inadequate database protection, which enabled manipulation of tax records.
“A forensic audit of PRAL’s system must be conducted by an international consultancy firm,” the prime minister said while chairing a meeting.
He directed investigations to identify the institutions, companies and individuals involved in the fraud.
“The investigative committee will present its report within three weeks, after which strict legal action will be taken against those found responsible,” the statement from Sharif’s office said.
During the meeting on tax reforms, the prime minister was briefed on new digital safeguards introduced to prevent manipulation of FBR data, including an audit vault, database protection wall, and real-time monitoring system capable of logging every IP address involved in data changes.
The statement said the meeting was also told that Pakistan’s case study on tax reforms had recently been highlighted at the World Bank’s annual conference in Washington, where it was commended as part of global efforts toward transparent revenue administration.
The prime minister maintained the ongoing reforms at the FBR would make tax evasion “virtually impossible” under the upgraded digital system while reaffirming his government’s commitment to strengthening transparency and accountability within the country’s tax administration.
