The government of Pakistan has approved a centralised digital tax operating model to enhance compliance and reduce corruption. This initiative, endorsed by Prime Minister Shehbaz Sharif, will be rolled out in three phases starting October 2026. The model aims to eliminate direct contact between tax officials and taxpayers, thereby curbing collusion and harassment. It will introduce three distinct wings: the National Faceless Audit Wing (NFAW), the National Assessment Wing (NAW), and the Field Operation Wing. The NFAW will conduct risk-based audits and monitoring without the ability to issue demands, while the NAW will handle assessment orders and notices digitally. The Field Operation Wing will focus on enforcement without assessing or modifying tax demands. This restructuring is expected to tighten controls around tax evasion, with a significant number of individuals previously under-reporting income. Taxpayers will benefit from a streamlined process, including pre-populated returns that reduce filing time from hours to minutes. The initiative is part of broader reforms aimed at improving tax compliance in Pakistan.