The Federal Board of Revenue (FBR) is set to revive the long-suspended Tax Directory and introduce a whistle-blower reward scheme aiming to crack down on widespread tax evasion in Pakistan.
The Federal Board of Revenue (FBR) has moved to revive its Tax Directory 2025 and enlist private-sector whistle-blowers under a new reward scheme to expose tax evaders. The plan now with the federal cabinet for approval includes offering whistle-blower companies 5–10% of recovered tax from cases of concealed income.
Two-Pronged Strategy of FBR
Officials confirmed that the Tax Directory, last published in 2019, will once again be made public if approved by the cabinet. In parallel, about 100 private firms could be authorized as whistle-blowers to report undisclosed assets and incomes.
“The wealthy elite who deliberately evade taxes will not be spared,” a senior FBR official said, stressing that the move is designed to plug long-standing loopholes in Pakistan’s tax collection system.
The government believes reviving the Tax Directory will strengthen transparency by exposing discrepancies in wealth declarations. In the past, the directory included both parliamentarians and general filers.
Whistle-Blower Reward Scheme Explained
Under the proposed FBR whistle-blower scheme Pakistan, private-sector firms providing credible information on hidden income or assets will receive a reward equivalent to 5–10% of the recovered amount.
Key points of the scheme include:
- Eligibility: Only registered companies will qualify, not individuals, due to judicial restrictions on handling confidential taxpayer data.
- Reward Share: Whistle-blowers will receive a percentage based on the scale of recovery.
- Scope: Focus on high-value tax dodging by businesses and wealthy individuals.
- Technology Use: Cross-matching digital data to validate disclosures against lifestyle and spending patterns.
By outsourcing the detection of hidden wealth, the FBR aims to sidestep the influence of traditional tax inspectors who officials admit can be “managed easily by the wealthy.”
Tax Evasion Remains Widespread
Despite record 7.2 million income tax returns filed in the last fiscal year, insiders say many were “nil filers” — individuals submitting empty returns only to remain on the Active Taxpayer List (ATL) for benefits such as reduced withholding tax.
This loophole has undermined Pakistan’s revenue base for years. The FBR’s renewed strategy seeks to shift from “volume of returns” to quality of declarations by ensuring that reported income reflects actual wealth and expenditure.
Economic observers note that reviving the Tax Directory will provide the public and media with an important accountability tool. The last such report, in 2019, highlighted stark differences in tax contributions among different income brackets and political figures.
Political and Historical Context
The Tax Directory initiative was first launched during the PML-N government (2013–2018) and later continued under PTI. It was discontinued in subsequent years without formal explanation, a move critics said shielded politically exposed individuals and business elites from scrutiny.
The current government now seeks to restore this practice as part of broader Pakistan tax reforms. Officials argue that greater transparency, combined with the whistle-blower mechanism, could boost confidence in the tax system and strengthen revenue mobilization.
What Happens Next
The federal cabinet is expected to review the summary for approval in the coming weeks. If cleared, the Tax Directory 2025 will be published and whistle-blower companies formally enlisted before the close of the calendar year.
Analysts say the plan could help expand Pakistan’s narrow tax base, provided the scheme avoids misuse and ensures protection for whistle-blowers.
Outlook
For ordinary taxpayers, the developments could bring stricter scrutiny of lifestyle versus declared income. For policymakers, the measures signal a renewed attempt to address Pakistan’s chronic revenue shortfalls without overburdening compliant taxpayers.
The question remains whether the new system will be implemented with enough safeguards to deter corruption and ensure accountability across all sectors.
