The Federal Board of Revenue (FBR) has decided to mandate the banks and electronic money institutions to report some financial transactions amounting to Rs. 10 million, or Rs. Under the new Finance Act 2026, 1 crore has been designated as the hub of central data.
The new measure focuses on enhancing tax monitoring by digital data sharing and automated information matching.
Large Financial Transactions to Be Reported
With a view to having banks and electronic money institutions provide financial data concerning account holders who are participating in transactions that are in excess of Rs. 1,000,000, the Finance Act 2026 will extend the existing concept of “particular financial information”.The concept of “particular financial information” will be expanded in the Finance Act 2026 to include financial information concerning account holders of banks or electronic money institutions in transactions where the amount exceeds Rs. 1,000,000. 10 million threshold.
The information will be transmitted to the central data hub of the FBR and the tax authority will be able to track the important financial transactions via an automated process.
Automated Comparison With Tax Records
In the new system, the FBR will be able to match data on large financial transactions with the taxpayers’ declared income, tax records and banking data available at their banks.
A substantial mismatch between reported income and the financial activity may be indicated for additional investigation or action under tax laws.
The automatic system will enhance the FBR’s capacity to spot transactions that are unusual or unexplained.
Banks and Electronic Money Institutions Included
The reporting obligation will not only be relevant for traditional banking institutions but also be relevant for electronic money institutions under the new framework.
It shows the increasing adoption of digital financial services and electronic payment systems in Pakistan.
The FBR’s efforts to gather information across various financial channels will help enhance its financial analysis capabilities and boost tax compliance.
Part of Pakistan’s Digital Tax Reforms
The initiative is part of the government’s tax administration modernization program, which involves technology, digital databases and automated data matching.
A data hub could make it easier for the tax authorities to find inconsistencies, as well as limit manual supervision.
Easier access to financial information will help the government achieve the goal of increasing tax-base and compliance, both from individuals and businesses.
What It Means for Taxpayers
The transaction amount of more than Rs. Just because a taxpayer has 1 crore, it does not mean they’re necessarily breaking a law or will be taken action against.
But when making big dollar buys, the information in a taxpayer’s records can be matched. If there are any inconsistencies, the FBR may request additional clarifications or take appropriate actions pursuant to the relevant tax laws.
It is therefore recommended that the tax payers ensure the accuracy of their income, financial transactions and tax records.
The Finance Act 2026 will further contribute to automation in tax monitoring in Pakistan. The government has introduced the implementation of the new rules so that banks and electronic money institutions will report major financial transactions to the FBR’s central data hub, in order to enhance the data matching process, detect any major differences and enhance the tax compliance process by digital means.
