FBR Rejects Rs 750bn EFS Misuse Allegations

Nadeem Tanoli

Islamabad: The government on Friday defended its automated financial management systems in Parliament, rejecting claims of large-scale revenue leakage and asserting that issues with bill rejections in the Accountant General of Pakistan Revenues (AGPR) are due to procedural flaws, not system errors.

Minister for Finance and Revenue Senator Muhammad Aurangzeb told lawmakers that AGPR operates a fully automated SAP-driven platform that flags discrepancies in submissions. While 29 percent of bills were returned or rejected, the minister clarified that none were due to SAP errors.

“Returns occur because departments submit incomplete, inaccurate, or procedurally non-compliant bills, all detected instantly by automated validations,” he said.

The minister highlighted ongoing modernization of AGPR through an upgrade to SAP S/4HANA, aimed at strengthening automation and financial controls.

He also noted the shift to digital payments via Pakistan’s RAAST platform, which has processed over PKR 500 billion in five million electronic transactions in the last three years.

Currently, 98 percent of government salary and pension payments are fully digitized, reducing delays and risks of corruption. The Online Bill Submission System now allows departments to file claims electronically without visiting AGPR counters.

Separately, the government confirmed that citizens can now access withholding tax certificates online. Banks and financial institutions provide downloadable statements, while the Central Directorate of National Savings issues certificates through its digital app and web platform.

On allegations of massive misuse under the Export Facilitation Scheme (EFS), the Federal Board of Revenue (FBR) dismissed claims of Rs 750 billion as baseless. Official data shows Rs 7.107 billion in detected duties for the textile sector during FY 2022–23 and FY 2023–24, with total detection across all sectors at Rs 15.72 billion.

The FBR has introduced corrective measures through SRO 301(1)/2025 and SRO 1435(I)/2025 to close loopholes and improve compliance.

While the government framed these steps as evidence of strengthened digital governance and transparency, opposition lawmakers criticized persistent billing disputes, slow reforms, and recurring irregularities, saying Pakistan’s financial administration continues to face structural challenges.