The Federal Board of Revenue (FBR) has proposed a new legal framework requiring banks and Electronic Money Institutions (EMIs) to electronically share selected account data to help identify tax evasion through automated cross-checking systems.

Under Section 165AB of the Finance Bill 2026–27, all financial institutions will be required to upload specified banking information to a Central Data Hub, which will be used for algorithm-based comparison with tax records. The provision applies regardless of existing banking secrecy and financial laws, as stated in the bill.

The proposed system targets account holders whose combined deposits or withdrawals exceed Rs. 100 million during a six-month reporting period. Banks will report details such as total credits and debits, opening and closing balances, and peak balance levels across all accounts held by a single individual.

The FBR said the information will first be processed through automated systems and will not be directly accessible to tax officials during the initial matching stage. If significant mismatches are identified, cases will be flagged and forwarded to the Compliance Risk Management (CRM) system for further review by the National Faceless Centre.

The bill also sets biannual reporting periods from July to December and January to June, with submission deadlines in January and July. It defines key terms such as “accounts,” “reporting period,” and “peak credits” to standardize data reporting across institutions.

In addition, the proposal allows the State Bank of Pakistan to develop a secure centralized repository of banking data using unique identifiers, enabling structured data sharing between financial institutions and tax authorities under a controlled system.