Past sales tax fraud unearthed: PM orders forensic audit of PRAL system

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday ordered a forensic audit of the Pakistan Revenue Automation Limited (PRAL) system through an international consultancy firm after being briefed on a past sales tax fraud incident that occurred due to outdated digital infrastructure and lack of monitoring.

Chairing a review meeting on Federal Board of Revenue (FBR) reforms, the prime minister expressed strong displeasure over the revelation of the sales tax fraud that began in 2018-19, a Prime Minister’s Office news release said.

He directed that the companies, institutions, and individuals involved be identified and that a comprehensive investigation report be submitted within three weeks. The prime minister also instructed strict legal action against those found guilty in the upcoming inquiry report.

During the meeting, officials briefed the prime minister on ongoing reform initiatives at FBR and particularly within PRAL. They informed him that the modernised digital systems now include robust features such as an Audit Vault, Database Protection Wall, Security Operations Centre, and continuous database monitoring mechanisms designed to ensure data integrity and security.

According to the briefing, the upgraded system has built-in capabilities to record the user’s IP address whenever any data alteration occurs, effectively preventing tax fraud.

The meeting was informed that the fact-finding committee formed by the prime minister earlier had investigated the 2018-19 sales tax fraud and concluded that the fraud took place due to PRAL’s obsolete digital system, absence of real-time monitoring, and inadequate database protection.

The officials stated that several corrective reforms have since been implemented to address these vulnerabilities as part of a broader digital modernization drive.

PM Shehbaz appreciated the FBR team for its performance and 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 Federal Ministers Azam Nazeer Tarar, Muhammad Aurangzeb, Dr Musadik Masood Malik, Attaullah Tarar, Ali Pervaiz Malik, Bilal Azhar Kayani, FBR chairman, and senior officials from relevant departments.

Meanwhile, Prime Minister Shehbaz Sharif inaugurated the fourth phase of the Prime Minister Youth Laptop Scheme 2025, reaffirming his government’s unwavering commitment to investing in education, technology, and skills for the country’s youth.

The event was attended by Chairman Prime Minister’s Youth Programme, Rana Mashhood Ahmad Khan, senior government officials, students, and alumni of previous laptop schemes.

In his address, the prime minister declared that “today marks a historic day in Pakistan’s journey of youth empowerment.”

He emphasised that the scheme is a continuation of his vision launched in 2010 as Chief Minister Punjab to promote education, fine arts, culture, sports, and information technology. Despite natural calamities like floods, he recalled, “not a single penny was cut from the youth’s development funds because education and empowerment are our top priorities.”

Shehbaz Sharif proudly stated that Pakistan is among the few countries formulating policies for Artificial Intelligence and even stepping into semiconductor manufacturing, adding that the country has a bright technological future. The prime minister highlighted that over 100,000 laptops have been distributed purely on merit since 2011, with an investment of Rs40–50 billion. He added that Rs500 billion is being allocated for youth education, skills, and empowerment, calling it “an investment in the nation’s destiny.”