Prime Minister Shehbaz Sharif has ordered an investigation to identify institutions, companies, and individuals involved in sales tax fraud.

Chairing a meeting in Islamabad on Thursday to review reforms within the Federal Board of Revenue (FBR), the prime minister expressed strong displeasure over past incidents of tax evasion and manipulation.

He directed that a forensic audit of the Pakistan Revenue Automation Limited (PRAL) system be carried out by an international consultancy firm and instructed the committee concerned to submit its findings within three weeks.

The prime minister also ordered strict legal action against those found involved once the report is finalised.

During the meeting, officials briefed the prime minister on FBR’s ongoing reforms, particularly the modernisation of PRAL.

They informed him that several digital security upgrades had been implemented, including an Audit Vault, Database Protection Wall, Security Operations Centre, and continuous monitoring systems to prevent unauthorised data access.

The upgraded system now logs a user’s IP address whenever data is modified, making future tax fraud nearly impossible, officials said.

It was noted that a fact-finding committee, constituted earlier to investigate the sales tax fraud that began in 2018-19, had traced the issue to PRAL’s outdated infrastructure and lack of monitoring mechanisms.

The prime minister was informed that multiple reforms have since been introduced as part of a broader digital modernisation drive aimed at strengthening tax administration and transparency.

He was also briefed on FBR’s participation in the World Bank’s annual conference held in Washington, where the Board’s reform initiatives received international recognition.

The prime minister commended the FBR team for its efforts and reaffirmed his government’s resolve to ensure accountability, transparency, and efficiency in tax collection.