The Auditor-General of Pakistan (AGP) reported that Rs 484.44 million—about Rs 48.44 crore—in cash rewards paid by the Federal Board of Revenue (FBR) was inadmissible across 40 cases. The finding covers fiscal years 2022-23 and 2023-24 and involves FBR headquarters and 22 field offices. It is an audit observation, not proof of criminal conduct or a final court ruling.
What the AGP audit found
In its Audit Report on Account of Federal Board of Revenue, Audit Year 2024-25, the AGP said the rewards had been paid without determining merit under the applicable rules. The audit finding covers 40 cases across FBR headquarters and 22 field offices, with the underlying audit period spanning fiscal years 2022-23 and 2023-24. The report says the irregularities were pointed out between February and November 2024.
FBR told the auditors that the rewards were for meritorious service and had been approved by the Board. The Departmental Accounts Committee asked the department at meetings from July 2024 through January 2025 to provide detailed justification against the Board’s criteria. The AGP said no further progress had been reported by the time its report was finalized, and recommended compliance with the criteria and expedited recovery from the concerned officers.
Why FBR is conducting a separate review
Business Recorder reported on March 29, 2026, that FBR had started a special audit of cash rewards paid to Customs officials and informers to check for possible misuse and identify any recovery from recipients of inadmissible rewards. The reported instruction assigned the work to Customs Enforcement offices in Lahore, Multan and Quetta, under the supervision of FBR Chief (Legal) Ashraf Ali.
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The reported review covers cases made or detected from July 2021 through December 2025. Its terms of reference include identifying cases where rewards were due, checking which rewards were fully or partly paid or remained unpaid, verifying the shares intended for the Customs Performance Fund, informers and staff, and checking whether reward conditions had matured. The team was also to record revenue or sale-proceeds realization and examine complaints about delayed payments.
Business Recorder said the team was directed to finish within three weeks of the instruction and report to the Board. That reported deadline does not establish that the special audit was completed, that it confirmed the AGP’s finding across its broader period, or that any money was recovered.
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How the AGP finding differs from FBR’s special audit
| AGP audit observation | FBR special audit, as reported | |
|---|---|---|
| Period | Fiscal years 2022-23 and 2023-24 | Cases made or detected from July 2021 through December 2025 |
| Coverage | 40 cases involving FBR headquarters and 22 field offices | Customs Enforcement offices in Lahore, Multan and Quetta |
| Purpose | Flagged Rs 484.44 million in rewards as inadmissible because merit had not been determined under the rules | Reportedly reviewing reward eligibility, payment status, shares, matured conditions, revenue realization and delayed-payment complaints |
| Status and recovery | AGP recommended compliance and expedited recovery; its report said no further progress had been reported by finalization | Instruction and three-week deadline were reported; final findings and recovery are not established in the cited report |
The Rs 484.44 million figure belongs to the AGP’s 40-case observation. It should not be treated as the confirmed total for FBR’s wider special-audit period.
What rules govern FBR cash rewards?
The AGP report cites Rule 2(v) read with Rule 8(1) of the Customs Reward Rules 2012 and Rules 2(vii)-(viii), 6 and 7 of the Inland Revenue Reward Rules 2021. For cases involving duty and tax evasion or confiscation, the report says the relevant duties and taxes must actually be realized before rewards are sanctioned. As the rule principle is reproduced from the AGP report by Business Recorder: “the calculation of reward in cases involving evasion of duty and taxes and confiscation of goods shall be sanctioned after the realization of the duty and other taxes involved.”
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Employee cash rewards also require meritorious or extraordinary service. The AGP report’s examples include exceptional planning that exceeds budget targets, exceptional arrears recovery, expanding the taxpayer base, exceptional performance defending cases before the Appellate Tribunal Inland Revenue (ATIR), and extraordinary devotion to duty or an original contribution. The audit issue was that merit had not been determined in the examined cases—not simply that rewards had been paid.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Were the payments illegal, and has FBR recovered the money?
The available finding describes the payments as inadmissible under the cited reward rules, but it is an audit observation and recommendation. FBR’s response was that the recipients had provided meritorious service and the Board had approved the awards; the AGP’s report says the committee sought detailed justification and that no further progress was reported by finalization. The cited reporting does not establish a final adjudication of the disagreement or prove criminal conduct.
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The sources cited here do not show a completed special-audit report, a confirmed recovery total, or resolution of the AGP observation. The recommendation to recover money is not evidence that repayment has taken place.
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Sources
- Auditor-General of Pakistan, Audit Report on Account of Federal Board of Revenue, Audit Year 2024-25.
- Sohail Sarfraz, Business Recorder, “FBR initiates special audit of cash rewards paid to taxmen, informers,” March 29, 2026.
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