Following the discovery of previous sales tax fraud, the PM commissions a forensic audit of the PRAL system.

After being informed about a previous sales tax fraud incident that happened as a result of antiquated digital infrastructure and a lack of oversight, Prime Minister Muhammad Shehbaz Sharif on Thursday ordered a forensic audit of the Pakistan Revenue Automation Limited (PRAL) system through an international consulting firm.

According to a news release from the Prime Minister’s Office, the prime minister voiced his severe disapproval of the disclosure of the sales tax fraud that started in 2018–19 while chairing a review meeting on Federal Board of Revenue (FBR) reforms.

Within three weeks, he ordered the identification of the organizations, businesses, and people involved as well as the submission of a thorough investigation report. The prime minister further directed that individuals found guilty in the next probe report face severe legal consequences.

The prime minister was updated by officials on the continuing reform activities at FBR, namely inside PRAL, during the meeting. They told him that the updated digital systems now have strong features including a Security Operations Center, Database Protection Wall, Audit Vault, and ongoing database monitoring systems that guarantee data security and integrity.

In order to successfully combat tax fraud, the briefing stated that the updated system has built-in capabilities to capture the user’s IP address anytime any data tampering occurs.

The gathering was told that the prime minister’s fact-finding committee had previously looked into the 2018–19 sales tax fraud and found that PRAL’s outdated digital system, lack of real-time monitoring, and insufficient database security were the main causes of the crime.

According to the officials, as part of a larger push for digital modernization, a number of corrective changes have subsequently been put into place to address these risks.

The FBR team’s performance and international recognition at the World Bank’s Annual Conference in Washington, where FBR’s reform case study was favorably received, were acknowledged by PM Shehbaz.