PM Shehbaz Orders Forensic Audit of PRAL After Revelation of Sales Tax Fraud

Prime Minister Muhammad Shehbaz Sharif has ordered a forensic audit of the Pakistan Revenue Automation Limited (PRAL) system by an international consultancy, following revelations of a major sales tax fraud that occurred due to outdated digital infrastructure and a lack of monitoring. Chairing a review meeting on Federal Board of Revenue (FBR) reforms, the Prime Minister expressed strong displeasure over the fraud, which began in 2018-19. He directed authorities to identify all companies, institutions, and individuals involved, and called for a comprehensive investigation report within three weeks. Strict legal action has been ordered against anyone found guilty in the upcoming inquiry. Officials briefed the Prime Minister on ongoing reforms at FBR and PRAL, highlighting the introduction of advanced digital safeguards, including an Audit Vault, Database Protection Wall, Security Operations Centre, and continuous monitoring. The upgraded system now records the user’s IP address for any data changes, making tax fraud far more difficult. A fact-finding committee previously established by the Prime Minister had concluded that the fraud was enabled by PRAL’s obsolete systems and lack of real-time oversight. Officials noted that several corrective reforms have since been implemented as part of a broader digital modernization effort. PM Shehbaz also commended the FBR team for its performance and for the international recognition received at the World Bank’s Annual Conference in Washington, where FBR’s reform case study was well-received. The meeting was attended by several federal ministers, the FBR Chairman, and senior officials from relevant departments.