The government has approved Rs. 4 billion for Pakistan Revenue Automation Limited (PRAL) to support the Federal Board of Revenue’s transformation plan. The decision comes as taxpayers continue to face difficulties with the FBR’s IRIS portal.
The Economic Coordination Committee (ECC) approved the Technical Supplementary Grant (TSG) during its meeting on Thursday. The Revenue Division submitted the summary seeking funds for PRAL.
Meanwhile, the 2026 tax return filing season is scheduled to officially end on October 15, 2026. Therefore, the additional funding comes at a critical time for taxpayers and tax professionals using the FBR’s digital systems.
Why Has the Government Approved Rs. 4 Billion for PRAL?
The approved Rs. 4 billion grant will support the restructuring and implementation of the FBR Transformation Plan. PRAL plays an important role in providing technology and automation support to the revenue authority.
The company supports several systems used for tax administration. Consequently, the additional funding is expected to assist the FBR in upgrading its digital infrastructure.
The grant also forms part of broader efforts to transform the country’s revenue collection system. In particular, the funding is linked to improving the technological framework supporting FBR operations.
However, the approval comes amid concerns surrounding the performance of the FBR’s IRIS tax system.
IRIS Portal Issues Raise Concerns
The FBR’s IRIS portal has faced persistent problems, creating difficulties for taxpayers and tax professionals. These issues have included disruptions within the digital tax system.
The timing is particularly important because the 2026 return filing season is approaching its October 15 deadline. As a result, taxpayers relying on IRIS have limited time to complete their filing requirements.
The government’s latest funding decision therefore places renewed attention on the FBR’s digital infrastructure. While the grant is intended to support transformation, the existing problems have highlighted the importance of reliable online tax services.
Moreover, PRAL provides technological support for systems that are central to tax administration. Therefore, improvements in digital infrastructure could play an important role in the FBR’s transformation efforts.
ECC Approves Customs Duty Amendment
Besides the PRAL funding, the ECC also approved an amendment related to Additional Customs Duty on locally manufactured tyres.
The amendment concerns SRO 693(I)/2006. The measure is intended to support domestic manufacturing.
The decision adds another economic measure to the committee’s latest approvals. However, it remains separate from the funding approved for PRAL and the FBR Transformation Plan.
Financing Framework for Small Businesses and Farmers
The ECC also approved a financing framework developed by the State Bank of Pakistan. The framework will bring eligible Agency Financial Institutions under existing risk coverage schemes.
These schemes are designed to cover small enterprises and small farmers. Therefore, the approval is aimed at extending the existing risk coverage framework to eligible financial institutions serving these sectors.
The measure was approved separately from the PRAL grant and the customs duty amendment.
What the Rs. 4 Billion Grant Means for FBR
The approval provides PRAL with additional financial support for the restructuring and implementation of the FBR Transformation Plan. At the same time, ongoing IRIS problems remain a significant concern for users of the tax system.
With the 2026 filing season ending on October 15, the reliability of FBR’s digital services remains particularly important. Taxpayers and tax professionals continue to depend on the IRIS portal for their filing-related activities.
The latest ECC decision therefore combines a major technology-focused funding approval with a period of continuing challenges for FBR’s digital tax system. How effectively the additional funding supports the planned transformation will remain closely linked to improvements in the systems used by taxpayers.
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