The FBR Promotions process has come under stricter scrutiny after tax authorities revealed that around 40% of officers considered for promotion are now on a performance watch list because of competency and integrity concerns.

During a background briefing, officials said financial integrity has become a key criterion for promotions and senior appointments.

Integrity Checks Tightened

According to FBR data, the proportion of officers placed on the performance watch list increased from about 2% in 2023 to nearly 40% in 2025.

Officials attributed the rise to reforms introduced by FBR Chairman Rashid Langrial after he assumed office.

They said the share of officers with low integrity ratings in critical Inland Revenue positions fell from 74% in July 2023 to 11% by June 2026. As a result, 89% of these key positions are now held by officers with high integrity ratings.

In Customs, the proportion of low-rated officers in critical posts declined from 71% in January 2023 to 9% by June 2026.

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Disciplinary Action Increases

The FBR said disciplinary proceedings resulting in major penalties almost doubled, increasing from 38 cases in FY2023-24 to 75 cases in FY2025-26.

Suspensions of Inland Revenue Service (IRS) and Customs officers in grades BS-16 to BS-21 also rose sharply, climbing from 33 cases in FY2023-24 to 105 cases in FY2025-26.

Officials said the accountability drive aims to strengthen transparency and ensure appointments are based on merit rather than political influence.

They added that no officer has been posted on the recommendation of politicians or bureaucrats since the reforms began, with appointments based on professional qualifications, integrity and competence.

Questionable Officers Sidelined

As of April 2026, the FBR identified 32 officers with questionable reputations, including 14 from Inland Revenue and 18 from Customs.

Most of the officers were serving in BS-20 and above and have since been sidelined from key postings.

Officials said every senior appointment now undergoes a stricter vetting process while ensuring no officer faces unfair penalties.

The FBR also introduced a system-based performance management mechanism, achieving 100% completion of peer reviews across its last three evaluation cycles.

Tax Ombudsman Flags Refund System Flaw

Separately, Federal Tax Ombudsman Zafar Hijazi directed the FBR to address a flaw in its FASTER sales tax refund system, saying it was disrupting refunds for exporters.

The ombudsman found that the system fails to distinguish between commercial export declarations and non-commercial sample exports, leading to unnecessary objections and delays in processing refunds.

During proceedings, Pakistan Revenue Automation Limited (PRAL) said it only receives export declaration data from Pakistan Customs and cannot modify the information independently.

The FTO instructed the Inland Revenue and Customs wings of the FBR to work together to resolve what it described as a systemic loophole affecting exporters.