Digital invoicing transactions in Pakistan surged to more than Rs2.5 trillion in July 2026 from Rs236 billion a year earlier, highlighting the rapid expansion of the Federal Board of Revenue’s (FBR) digital tax reforms.
The development was shared at a weekly meeting on FBR reforms chaired by Prime Minister Muhammad Shehbaz Sharif in Islamabad.
The meeting was informed that digital invoicing transactions had crossed Rs2.5 trillion in July 2026, compared with Rs236 billion in July 2025. The government has set a target of Rs4 trillion in monthly digital invoicing transactions by December 2026.
The briefing also highlighted the impact of faceless assessment in the customs sector. Average revenue per goods declaration increased by 12% between January and June 2026, while the system also improved the identification and monitoring of import irregularities.
The government is now working on IRIS 3.0, a new tax operating model and a central data hub to make the tax system more integrated and data-driven. International consultants have been engaged to design IRIS 3.0.
The reforms also include plans to pilot auto-tax and eventually use artificial intelligence and machine learning to improve tax collection.
On anti-smuggling measures, the meeting was informed that 2,500 illegal petrol pumps had been shut down through the Rah-e-Raftar app, with legal action also taken against their operators.
The government has also introduced measures including GIS tagging of legal petrol pumps, GPS tracking of petroleum products and integration of oil marketing companies’ ERP systems with the tracking system.
Meanwhile, the recruitment process for 280 goods elevators is nearing completion as part of efforts to strengthen customs assessment. A Central Assessment Unit in Islamabad is expected to become operational under interim arrangements by December 31, 2026, while its fully integrated facility is targeted for June 2027.
Prime Minister Shehbaz Sharif directed the FBR to complete reform measures within the stipulated timeframe and ensure third-party audits to assess their transparency, effectiveness and sustainability.
He also ordered intensified action against tax evasion, smuggling and illegal businesses, stressing that digitalization, production monitoring and automated systems should remain key pillars of the FBR’s reform agenda.
