Pakistan’s Federal Board of Revenue (FBR) has unveiled a new AI-powered tax strategy aimed at achieving a revenue collection target of Rs15.264 trillion during the fiscal year 2026-27. The initiative focuses on improving tax compliance through digital monitoring and advanced data analysis.
FBR Chairman Rashid Mahmood Langrial said the authority will implement an algorithm-based digital settlement mechanism to resolve tax matters more efficiently. The new system is expected to strengthen enforcement while minimizing delays in tax assessments.
Despite offering tax relief to salaried individuals, exporters, the real estate sector, and introducing a fixed tax scheme for retailers, the FBR remains confident that it can achieve its ambitious collection target. The government also plans to rationalize or gradually reduce the super tax to support economic growth.
The FBR will conduct monthly General Sales Tax (GST) audits using digital tools to enhance compliance and increase overall tax revenues. Officials believe technology-driven monitoring will help identify tax gaps more effectively.
According to Langrial, key economic indicators including GDP growth, Large-Scale Manufacturing (LSM) performance, and inflation measured through the Consumer Price Index (CPI) will significantly influence tax collection during the upcoming fiscal year.
The government informed the IMF and Parliament that 26 revenue-enhancing measures, including stronger enforcement, policy reforms, improved compliance, and selective tax rate adjustments, are expected to generate an additional Rs1.02 trillion in FY2026-27.
Although the FBR revised its FY2025-26 revenue target downward to Rs12.983 trillion after several adjustments, officials remain optimistic that digital transformation, artificial intelligence, and better enforcement will enable the authority to achieve the higher revenue target in the next fiscal year.
