Govt Accelerates FBR Reforms, Pushes Cashless Economy and Digital Tax System

The government is stepping up efforts to reform the Federal Board of Revenue (FBR), improve tax administration, and promote a cashless economy as part of its broader strategy to strengthen Pakistan’s financial system.

Speaking at the certificate distribution ceremony of the FBR’s Postgraduate Diploma Programme at Lahore University of Management Sciences (LUMS), Finance Minister Muhammad Aurangzeb said the government is introducing key reforms aimed at making the tax system more transparent, efficient, and taxpayer-friendly.

He said the reforms are focused on simplifying tax procedures, restoring public confidence in the FBR, and building a transparent system that supports Pakistan’s long-term economic growth. According to the minister, the government is working on improving both tax policy and tax administration through a coordinated approach.

Govt Accelerates FBR Reforms, Pushes Cashless Economy and Digital Tax System

Aurangzeb said a new operating model also helps the FBR to improve institutional performance and transparency. He added that Prime Minister Shehbaz Sharif is giving special attention to FBR reforms and the promotion of a cashless economy to help document economic activity, broaden the tax base, and increase financial transparency.

The finance minister also highlighted recent progress in tackling tax evasion. He said the government has identified major cases of sales tax fraud, leading to higher tax collections and increased revenue for the national treasury.

Emphasizing the importance of technology, Aurangzeb said modern digital systems and integrated data are essential for building an effective tax administration. He encouraged FBR officers to make full use of emerging technologies, particularly artificial intelligence (AI), to improve efficiency and align the institution with international standards.

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He noted that rapid technological advancements require continuous learning and adaptation. According to him, keeping tax officials updated with modern tools and digital solutions is necessary to improve the FBR’s overall performance.

Aurangzeb also stressed that FBR officers have a crucial responsibility to protect taxpayers’ trust and safeguard national resources. He said the government wants to rebuild public confidence in the tax authority, improve the business environment, and ensure that the benefits of ongoing reforms reach ordinary citizens.

Speaking at the same event, FBR Chairman Muhammad Rashid Langrial said strengthening the professional skills of tax officials is vital for creating an efficient and transparent tax system. He added that the FBR is continuing its efforts to modernize tax administration and equip its workforce with the knowledge and skills needed to meet evolving challenges.

The government’s latest initiatives reflect its broader commitment to digital transformation, improved governance, and a more transparent tax system aimed at supporting sustainable economic growth.