Islamabad, June 9, 2025: In a major move to tighten the grip on tax evaders, the federal government is set to restore the enforcement powers of the Inland Revenue’s Intelligence and Investigation (I&I) Directorate under the Federal Board of Revenue (FBR).
This strategic shift, likely to be announced in the upcoming budget, aims to strengthen one of FBR’s key wings that had been significantly weakened by past court rulings.
Senior FBR officials disclosed that previous legal decisions had stripped the Directorate of critical powers, especially those relating to arresting individuals and registering First Information Reports (FIRs) against businesses involved in tax fraud. These constraints, they added, have been a major roadblock in efforts to plug revenue leaks and deter tax evasion.
By legislatively restoring these powers, the government is aiming to revamp the operational strength of the Directorate. The move is expected to expedite investigations and allow swift legal action against non-compliant taxpayers—without the procedural hurdles that previously hampered enforcement.
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If passed, this policy shift could become a turning point in Pakistan’s tax enforcement landscape, giving FBR the authority it needs to launch a more aggressive and efficient crackdown on tax irregularities.
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