The Federal Tax Ombudsman (FTO) has mandated that all proceedings and hearings involving the Federal Board of Revenue (FBR) shift entirely online, a move aimed at streamlining dispute resolution and reducing physical appearances. Main Developments Under an office order issued on Wednesday, the FTO directed that effective immediately, all hearings at its headquarters and regional offices must be conducted online unless both parties—or one party—explicitly requests a physical hearing in writing. When the FTO requests para-wise comments or issues hearing notices, both the complainant and the relevant FBR field formation will be given a choice between online and in-person participation. However, for cases involving complex legal or procedural issues, traditional physical hearings will continue. Read also: Why Pakistan's auto industry faces a production standstill Background The directive builds on earlier instructions issued by the FTO on June 1, 2026, which first signaled the push toward digital processes. The FTO is an independent body tasked with addressing taxpayer complaints against the FBR, and its shift to online hearings reflects a broader government effort to leverage technology for administrative efficiency. Historically, FTO proceedings required physical attendance, causing delays and inconvenience for taxpayers across the country. The new policy aims to eliminate those barriers while maintaining the option for personal hearings when necessary. Why It Matters For taxpayers and businesses, this means faster, more accessible resolution of disputes with the tax authority without the burden of travel. The FTO expects the FBR's field formations to respond more promptly and cooperate fully under the new system, which could reduce case backlogs. The success of the initiative hinges on seamless digital infrastructure. The FTO's administration and IT wings have been tasked with ensuring uninterrupted and smooth online communications to support the transition. What's Next All FTO regional offices and headquarters must immediately implement the online hearing protocol. The FTO will monitor compliance and expects the FBR to reciprocate with timely responses. If technical glitches arise, the IT wing is responsible for resolving them to maintain momentum. Observers will watch whether the digital-first model reduces average case resolution times and whether more taxpayers opt for online hearings over physical ones.