Minister of State for Finance Bilal Azhar Kayani on Friday said the government was in the final stages of preparing revised rules for a strengthened whistleblower reward system as part of wide-ranging reforms underway in the Federal Board of Revenue (FBR) to curb tax evasion, widen the tax net, and enhance compliance.
Responding to questions in the National Assembly, he said the whistleblower mechanism-approved in principle by the Prime Minister-was being redesigned to strike the right balance between reporting major tax evasion and protecting honest taxpayers from harassment. “We want a system where genuine whistleblowers feel protected and rewarded, but businesses are not unjustly targeted. This balance is essential,” he said.
Kayani said inputs from major chambers of commerce had been incorporated to ensure a fair and transparent framework. The revised rules, currently under preparation, would be shared with the House once finalized.
“Digital invoicing, POS integration and data-driven compliance are central to capturing maximum business transactions,” he said. Kayani said FBR had also ensured the confidentiality and security of its systems through multiple third-party audits, while new risk-management tools and integrated data systems were being developed to identify non-filers and evaders without burdening compliant taxpayers.
Responding to supplementary questions, the minister said the prime minister personally reviewed FBR’s reform progress every week and monitored each milestone. “Improving FBR’s performance, expanding the tax base and curbing evasion are daily priorities of the government,” he said. Kayani said FBR’s ongoing reforms revolved around people, technology and processes.
He said audit capacity was being expanded through training and by adding private-sector professionals, while artificial intelligence was being deployed to improve audit selection, identify under-reporting and reduce unnecessary harassment.
“AI-driven audits, digital production tracking, lifestyle audits and detection of fake and flying invoices are transforming enforcement in Pakistan,” he said, adding that an 84-member dedicated cell was already scrutinizing high-risk cases using data analytics.
He reiterated that while the government was tightening enforcement against evaders, it was equally committed to making tax payment easier for honest citizens. “The goal is clear: facilitate compliant taxpayers and tighten the net around those who evade,” he stressed.
Kayani expressed confidence that with continued reforms and strong political oversight, Pakistan would achieve deeper tax-base expansion, stronger revenues and sustainable fiscal stability.
Lawmakers in the Senate were told on Friday that the government’s revenue policy centered on expanding the tax base so the burden was shared more widely. Responding to a question from Senator Kamran Murtaza, Minister of State for Finance and Revenue Bilal Azhar Kayani acknowledged that the salaried class contributed a substantial share to Pakistan’s national tax collection. He however emphasized, that the government’s broader objective was to widen the tax base by bringing additional sectors into the tax net, ensuring a more equitable distribution of the tax burden and strengthening overall revenue generation.
He said that effective enforcement and improved documentation last year resulted in higher revenue collection, which strengthened the government’s efforts to widen the tax base. Responding to Senator Fawzia Arshad, the minister said the government aims to create an enabling environment for taxpayers so they can interact with FBR more easily and with greater confidence.
He said that if any specific enterprise is facing double taxation, the details may be provided and the matter will be corrected immediately. Senator Palwasha Khan raised concern that her late father, despite having passed away six months ago and despite submission of his death certificate, continued to receive FBR messages directing him to file tax returns.
The minister expressed condolences and said, “Madam, may Allah bless your late father. These issues sometimes arise because we are shifting to AI-based systems. Your feedback is important, and we will get this corrected immediately.”