Federal Finance Minister Muhammad Aurangzeb on Saturday said the government is accelerating efforts to modernize the Federal Board of Revenue (FBR) through artificial intelligence (AI), integrated digital databases and a cashless economy to improve tax compliance and curb evasion.
Addressing the closing ceremony of the FBR’s Postgraduate Diploma Programme at Lahore University of Management Sciences (LUMS), Aurangzeb said the reform agenda, led by Prime Minister Shehbaz Sharif, is focused on making the tax system more transparent, efficient and taxpayer-friendly.
He said a new operating model is being introduced at the FBR to improve governance and institutional performance. The government is also linking data across public institutions to strengthen information sharing, detect tax fraud and support better policy decisions.
Aurangzeb said the authorities have already identified major cases of sales tax evasion, resulting in higher recoveries and increased revenue for the national exchequer.
Highlighting the importance of technology, he urged FBR officers to embrace AI and continuously upgrade their skills, saying modern tax administration depends on digital tools and data-driven decision-making.
The finance minister added that the government’s broader reform programme also includes promoting a cashless economy to document financial transactions, broaden the tax base and enhance transparency.
He said the reform process began with the sugar sector on the prime minister’s instructions before expanding to the cement industry, where monitoring and enforcement measures were also introduced.
Congratulating officers who completed the diploma programme, Aurangzeb said they would play a key role in transforming the FBR into a modern and effective revenue authority.
FBR Chairman Muhammad Rashid Langrial said continuous professional training is essential for improving tax administration and equipping officers with the skills needed to meet evolving challenges. He added that the institution remains committed to building a transparent and efficient tax system through capacity building and modernization.
