The future of Pakistan Revenue Automation Limited (PRAL), the technology backbone of the Federal Board of Revenue (FBR), has been thrown into fresh uncertainty after its chief executive officer, Amir Malik, declined a temporary extension in his tenure.
PRAL’s board had offered Malik an interim extension until a new CEO could be appointed, but sources confirmed that he rejected the offer. Malik reportedly argued that neither the board nor the FBR defended the organisation when Prime Minister Shehbaz Sharif ordered its closure and replacement with a more efficient entity. His extended six-month term, following an earlier three-year tenure, ends next week.
The government has not yet advertised the CEO position, but FBR officials said a full-time chief executive would be hired from the private sector. PRAL employees remain unsettled as rumours of shutdown or restructuring continue to fuel concerns about job security, with some senior officials already resigning.
Last month, confusion arose when the prime minister directed PRAL’s closure, only for the government to later clarify that the minutes of the meeting were inaccurately recorded and that PRAL would be restructured instead of being shut down.
In response, PRAL’s management stressed that operations would continue uninterrupted during the transition. The organisation said it is evolving into a new, state-of-the-art structure under FBR’s digital transformation strategy, promising enhanced technological innovation and stability for taxpayers.
PRAL currently manages Pakistan’s digital tax infrastructure, including systems for tax returns, refunds, and payment deposits. However, outdated hardware and legacy software such as Oracle 8 have raised questions about sustainability. Despite a foreign loan in 2019 to upgrade systems, progress has stalled, leaving major platforms like STARR and FASTER running on obsolete technology.
Adding to the challenges, PRAL faces difficulties attracting private-sector experts, including a CFO and chief product officer, while several senior hiring decisions remain pending.
The FBR has already extended the deadline for filing income tax returns until October 31, 2025, a move that may reduce the risk of operational disruptions during PRAL’s uncertain transition.