PR No. 121

Government Considers Digital Monitoring System and AI-Based Tax Enforcement Reforms for Coming Finance Bill

Islamabad: May 13, 2026

Federal Minister for Economic Affairs Ahad Cheema chaired a high-level meeting to review proposed tax enforcement measures for the upcoming federal budget, aimed at curtailing the tax gap and enhancing revenue collection. The meeting was attended by Federal Minister for Climate Change Musadik Malik, Advisor to the Prime Minister on Industries and Production Haroon Akhtar Khan, Minister of State for Finance Bilal Azhar Kayani, Chairman Federal Board of Revenue Rashid Mahmood Langrial, Attorney General for Pakistan Mansoor Usman Awan and other senior officials.

During the meeting, the FBR team gave a detailed briefing on various proposed tax enforcement measures under consideration for the coming budget to address underreporting, non-reporting, under-invoicing, tax evasion and smuggling. The participants reviewed a number of proposals focused on improving transparency, documentation and enforcement through the use of technology-driven solutions.

Among the key proposals discussed were the introduction of digital monitoring mechanisms and AI-based systems to detect false data in tax returns, strengthen monitoring of underreporting and curb tax evasion. In addition, participants discussed the proposed introduction of an e-auction system for confiscated goods by customs authorities to ensure transparency and efficiency in the disposal process.

Minister for Economic Affairs Ahad Cheema emphasized that the Government will bring tax enforcement reforms by considering economic growth, noting that they do not want to create hurdles in the business environment. He further stated that the government completely supports a tax system with minimum human interaction. All the participants agreed that the government will ensure a business-friendly environment and promote economic growth through tax reforms; moreover, they concluded that a digitally automated system and technology-driven solutions will be a constructive solution.

Federal Minister for Economic Affairs Ahad Cheema directed the FBR to further refine the proposed measures and ensure that all reforms are practical, technology-oriented and capable of delivering effective results. He emphasized the government’s commitment to broadening the tax base, revenue optimization, enhancing transparency and modernizing the tax administration system in order to promote sustainable economic growth and fiscal stability.

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