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The Federal Board of Revenue (FBR) has proposed a new banking data-sharing framework under the Finance Bill 2026-27 that would enable real-time integration of banking and tax records to strengthen tax compliance and identify potential cases of tax evasion.
The Federal Board of Revenue (FBR) has proposed a new digital monitoring framework that would allow the tax authority to integrate banking and tax records in real time, as part of broader efforts to improve tax compliance and strengthen revenue collection.
According to Bloom Pakistan and Business Recorder, the proposal has been included in the Finance Bill 2026-27 through a new Section 165AB, which seeks to establish a mechanism for electronically sharing banking information with tax authorities.
Under the proposed framework, all banking companies and Electronic Money Institutions (EMIs) will be required to submit specified account information to a Central Data Hub. The information will then be matched with taxpayers declared income and tax records through automated systems.
Bloom Pakistan reported that the FBR plans to use the system to “integrate banking and tax records in real time to detect potential tax evasion,” allowing authorities to identify discrepancies between financial activity and reported income.
According to the proposal, “all banking companies and Electronic Money Institutions (EMIs) will electronically send specified account information to a Central Data Hub,” where the data will be automatically compared with taxpayers’ declared income and tax records.
The bill further states that banks will report detailed account information for individuals whose “total deposits or withdrawals exceed Rs100 million during a six-month period.” The information will include opening and closing balances, peak credit amounts, and total transaction volumes across all accounts.
Bloom Pakistan also noted that “initially, automated systems will process and match the data,” and that “tax officials will not directly access the information at this stage.” Instead, cases involving significant discrepancies will be referred to the Compliance Risk Management (CRM) system for further review and possible action.
The amendment introduces two reporting periods. The first will run from July to December, while the second will cover January to June. Banks will be required to submit the relevant information in January and July, respectively.
The Finance Bill also authorises the State Bank of Pakistan (SBP) to “develop and maintain a secure banking data repository.” According to the report, the repository will “support regulated data sharing and strengthen financial monitoring across the banking sector.”
The proposal forms part of the government’s broader efforts to expand the tax base, improve economic documentation, and strengthen digital tax enforcement mechanisms. If approved by parliament, the framework could significantly enhance the FBR’s ability to identify undeclared income and improve compliance monitoring.
