In a decisive move to strengthen Pakistan’s fight against tax evasion and money laundering, the government has approved a plan granting the Federal Board of Revenue (FBR) direct access to taxpayers’ bank accounts. This initiative marks a significant step toward closing loopholes in the country’s financial monitoring system and expanding the tax net.
The upcoming integrated information-sharing system will connect commercial banks directly with the FBR, enabling real-time monitoring of high-risk bank accounts. This mechanism will allow authorities to take swift action against suspicious transactions, helping detect undeclared assets and financial irregularities.
Data-sharing network to uncover hidden wealth
Under provisions in the Finance Bill 2025, all banks will be legally required to share consolidated account data of their customers with the FBR. This will include information on accounts maintained across multiple banks, giving tax authorities a complete picture of an individual’s financial activity. By comparing bank data with tax returns, the system will help identify discrepancies between declared income and actual transactions, exposing any concealed wealth.
If inconsistencies are detected, legal proceedings will become mandatory. The FBR has emphasized that strict confidentiality protocols will be in place, ensuring all collected data is used exclusively for tax enforcement purposes.
Multi-agency coordination for new framework
To oversee the rollout of this system, a high-level committee has been formed, comprising representatives from the Ministry of Finance, FBR, and the State Bank of Pakistan. Once finalized, the network will also integrate the Securities and Exchange Commission of Pakistan (SECP), private banks, and licensed money exchange companies, creating a comprehensive, interlinked financial database.
Aligned with IMF commitments
Officials confirm that the move is part of Pakistan’s efforts to meet commitments made to the International Monetary Fund (IMF), which has raised concerns about weaknesses in the country’s anti-money laundering and counter-terror financing framework. By enhancing transparency and traceability in the financial sector, the government aims to curb illicit flows, strengthen revenue collection, and restore investor confidence.
