PM directs FBR to accelerate enforcement action against smuggling

August 10, 2026 (MLN): Prime Minister Shehbaz Sharif on Monday directed the Federal Board of Revenue (FBR) to sustain effective enforcement action against smuggling, tax evasion, and illegal businesses nationwide, while accelerating the pace of ongoing reforms at the tax authority.

Chairing a review meeting on FBR reforms, the prime minister noted rising confidence among the business community in the reform process and instructed that the Chairman FBR and senior officers spend two days every month in Lahore, in addition to their existing monthly presence in Karachi.

He said enforcement measures needed to be stepped up to meet the prescribed revenue target, APP reported.

The prime minister commended the FBR's crackdown on illegal cigarette manufacturing units in Chakwal and Swabi and directed that only officers of good reputation and integrity be posted to sensitive positions and departments within the FBR.

He also called for the timely completion of the proposed Faceless System for Inland Revenue, with full rollout to be ensured by 2027.

The meeting was informed that the first phase of the Faceless Inland Revenue System would go live from October 1, forming a key part of the FBR's AI- and technology-driven digitization drive.

The system will comprise a National Faceless Audit Wing for tax return audits and a Faceless Assessment Unit for assessments, with case jurisdiction assigned randomly, regardless of geographical boundaries.

The Chairman FBR briefed the prime minister on his monthly stay in Karachi during the first week of each month, as previously directed, during which he met representatives of seven major trade bodies and heard out their concerns.

He said issues raised by the business community during these visits were resolved promptly.

Time-bound Standard Operating Procedures were being put in place for the payment of tax refunds to exporters, the chairman said, adding that intelligence-based operations were carried out against illegal cigarette factories in Chakwal and Swabi.

Both facilities were sealed, with stocks of illegal cigarettes and machinery seized.

Federal Ministers Azam Nazeer Tarar, Dr. Musadik Masood Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar, and Shaza Fatima Khawaja, Special Assistant Haroon Akhtar, State Bank Governor Jameel Ahmad, and senior officials of relevant institutions attended the meeting.

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