The Federal Board of Revenue (FBR) has introduced stricter monitoring of high-value financial transactions in Pakistan under the Finance Act 2026. Banks and Electronic Money Institutions (EMIs) will be required to report transactions exceeding Rs100 million to the FBR’s central data hub.
The new mechanism is aimed at strengthening tax monitoring, improving financial transparency and identifying possible discrepancies between taxpayers’ declared income and their banking activity. The FBR will be able to cross-check financial information with existing tax records.
If reported transactions do not correspond with an individual’s declared income or tax information, the authorities may initiate further scrutiny and take action under applicable tax laws.
The measure is part of the government’s broader efforts to improve tax compliance, document the economy and strengthen oversight of high-value financial activity. Financial institutions will also be required to maintain accurate account and transaction records and ensure timely reporting to the tax authorities.
