ISLAMABAD: Despite Prime Minister Shehbaz Sharif’s commitment to facilitate exporters, Federal Board of Revenue (FBR) has ordered scrutiny of tax records of over top 480 exporters for taking action where taxable income is reduced without reasonable justifications. In this regard, the FBR has issued instructions to all Chief Commissioners Inland Revenue here on Tuesday. The FBR’s new direction has sent a negative message among the entire exporters’ community with panic and uncertainty. Exporters are shocked that how the FBR can open tax records of leading 480 exporters through audit/investigation when the government is repeatedly talking about ending harassment of the tax officials in the field formations. Pakistan Business Council and Pakistan Retail Business Council have also expressed their concern over the FBR’s decision to scrutinise tax records of leading exporters of the country. READ MORE: Exporters: FBR issues draft Insurance Guarantee Format According to the FBR’s directive to the field formations, analysis carried out at FBR Headquarters revealed that a significant number of exporters (individuals/AOPs/companies) have substantially reduced their declared taxable income for Tax Year 2025, following the amendment to Section 154 of the Income Tax Ordinance, 2001, through the Finance Act, 2024, whereby the taxation regime for export proceeds has been modified from final tax to minimum tax. In view of the above, all field formations are directed to closely examine the declarations of major exporters falling within their respective jurisdictions to ascertain whether any abnormal reduction, inconsistency, or change in declaration patterns are evident after the said amendment, FBR maintained. In cases where taxable income has been substantially reduced without reasonable justification, appropriate action may be initiated in accordance with the law, FBR stated. Field formations are further requested to furnish a list of such exporters falling in the said category as per following, latest by January 1, 2025, FBR added. A tax expert told Business Recorder that the FBR recent directions vide direction letter No 163507-R dated 30th December 2025 addressed to all Chief Commissioners to scrutinize cases of 480 top exporters of the country and directing, “appropriate action may be initiated in accordance with the law.” In Annexure to the letter FBR has recommended that audit of cases (under section) u/s 177, reopening of the cases u/s 122(5A) and u/s 175 C of the Income Tax Ordinance 2001 posting of officers on premises of exporters. The directions don’t stop here; FBR has demanded reporting from Chief Commissioners in each case action taken u/s 177,122(5A) and or 175C of the Income Tax Ordinance 2001, orders passed u/s 177/122(5A), demand created u/s 177,122(5A), additional revenue collected u/s 177,122(5A),147 of the Income Tax Ordinance 2001. The letter of FBR in opinion of the exporters and tax advisors is a very unfortunate direction and order given by FBR to the Chief Commissioners and it is bound to not only create harassment but also massive discouragement to the large exporters of the country to further invest in export sectors. Prime Minister Shehbaz Sharif pledges export-led growth while chairing a tax reform meeting on 2nd December 2025 attended by senior ministers, officials, and Shehzad Saleem, chairman of the working group. Minister of Finance and Revenue Muhammad Aurangzeb recently in an interview reportedly stated that the Country is moving away from a consumption- and debt-driven growth model towards an export-led strategy, Minister of Planning and Development Ahsan Iqbal champions’ export-led growth as Pakistan’s key to economic stability and development, advocating it over import-substitution, aiming for a $1 trillion economy by 2035 via his “Uraan Pakistan” vision. Minister In-charge of Industries Haroon Akhtar Khan while addressing Pakistan Prosperity Forum 2025 in November 2025 “We are making tariffs an engine of export-led growth rather than a barrier to trade,” Expert stated that the export-led growth is an economic strategy where a country boosts its economy by focusing on exporting goods and services and encouraging export sector, leveraging areas of comparative advantage to drive industrialization, generate foreign exchange, create jobs, and attract investment. On one hand, the entire government leadership is encouraging export led growth but the FBR’s direction referred will not only lead to further discouragement of large exporters who already are suffering due to high rate of taxes, high energy rates and massive stuck up refunds with FBR. Copyright Business Recorder, 2026