FBR overhaul nears completion as govt finalises whistleblower rules

Minister of State for Finance Bilal Azhar Kayani on Friday said the government is in the final stages of preparing revised rules for a strengthened whistleblower reward system, part of a wide-ranging Federal Board of Revenue (FBR) reform drive to curb tax evasion and expand the tax base.

Speaking in the National Assembly, he said the mechanism, approved in principle by the Prime Minister, is being redesigned to ensure major evasion is reported while honest taxpayers are protected from harassment. “We want a system where genuine whistleblowers feel protected and rewarded, but businesses are not unjustly targeted,” he said.

Kayani said inputs from major chambers of commerce have been incorporated to ensure fairness and transparency, with the rules to be shared with the House once finalised. He added that digital invoicing, point-of-sale integration and data-driven compliance are central to capturing maximum business transactions.

He said FBR has strengthened system confidentiality through multiple third-party audits and is developing new risk-management tools and integrated data systems to identify non-filers and evaders without burdening compliant taxpayers.

On supplementary questions, Kayani said the Prime Minister reviews FBR reform progress weekly, monitoring each milestone. “Improving FBR’s performance and curbing evasion are daily priorities of the government,” he said.

He said reforms focus on people, technology and processes, including expanding audit capacity through training and private-sector professionals, while deploying artificial intelligence to improve audit selection, detect under-reporting and reduce unnecessary harassment.

“AI-driven audits, digital production tracking, lifestyle audits and detection of fake and flying invoices are transforming enforcement,” he said, noting that an 84-member dedicated cell is already scrutinising high-risk cases using data analytics.

Kayani reiterated that while enforcement is being strengthened against evaders, the government remains committed to easing compliance for honest taxpayers. “The goal is clear: facilitate compliant taxpayers and tighten the net around those who evade,” he said.

He expressed confidence that continued reforms and strong political oversight will expand the tax base, increase revenues and ensure sustainable fiscal stability.