ISLAMABAD: In a major development, Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to conduct an independent, three-year, third-party audit of customs-bonded ware-houses nationwide.

The issue came to the prime minister’s notice after a private company was recently found to have allegedly manipulated in-bond and out-bond rules for temporary gains. The matter was investigated and resolved.

An official announcement from the Prime Minister’s Secretariat said the premier has reviewed the existing rules and procedures governing bonded warehouses. These facilities, run by the private sector, store goods after customs clearance.

The premier said there was no room for irregularities in customs-bonded warehouses. He said strict action would be taken against officials found involved in any irregularity or illegal activity in accordance with the law.

Sets Oct 1 deadline for faceless tax system rollout

The premier was informed that physical stock verification of customs-bonded warehouses would be carried out across the country. Moreover, measures are being taken to ensure the licensing and security of customs-bonded warehouses, it was further said.

The meeting covered bonded warehouses and inland-revenue enforcement. Petroleum cargo monitoring was reported to be linked to the WeBOC system, while bonded trade accounts for 16.5 per cent of the country’s total imports.

On the prime minister’s instructions, physical stock verification would be carried out nationwide, alongside measures to strengthen licensing, security, valuation testing, and IT systems.

As part of the weekly review, PM Shehbaz Sharif directed that implementation of FBR reforms be accelerated, welcoming the growing confidence of the business community in the tax reform process.

He directed the FBR chairman and senior officers to spend two days each month in Karachi and Lahore, and to intensify enforcement measures to achieve the set revenue targets.

Mr Shehbaz further directed the FBR to continue effective enforcement against smuggling, tax evasion and illegal businesses, and appreciated recent actions against unlawful cigarette manufacturing units in Chakwal and Swabi.

He emphasised that officers of good repute and integrity be appointed to all sensitive posts and departments, and that the proposed faceless system for Inland Revenue be completed in a timely manner.

The prime minister said the full rollout of the faceless system must be ensured by 2027.

Officials briefed the meeting that the first phase of the faceless Inland Revenue system will become operational on Oct 1.

The AI-driven and technology-based system is a key component of FBR’s digitisation reforms, incorporating a National Faceless Audit Wing for tax audits and a Faceless Assessment Unit for adjudication.

Under the new system, tax cases will be allocated randomly, irrespective of geographical jurisdiction.

The meeting was informed that intelligence-based operations were carried out against illegal cigarette factories in Chakwal and Swabi, resulting in factory closures, the seizure of illicit stock, and the confiscation of machinery, the announcement added.

Published in Dawn, August 12th, 2026