In a recent development, Pakistan’s Election Commission has stopped the interim government’s plans to revamp the country’s tax authority, the Federal Board of Revenue (FBR).
The decision came after the caretaker Finance Minister, Shamshad Akhtar, announced a restructuring strategy that is intended to be carried out by the future elected government.
During a broadcasted speech, Akhtar detailed the federal cabinet’s decision to restructure and modernize the FBR, aiming to increase its contribution to the nation’s economy.
The goal is to boost the tax’s share of Pakistan’s gross domestic product (GDP) to 18% by the year 2029.
However, the Election Commission objected, arguing that a caretaker government should focus only on routine matters and avoid controversial changes that are not easily reversible.
Despite this pushback, the Finance Minister emphasized that the restructuring blueprint had received approval from all relevant parties, including the Special Investment Facilitation Council. The comprehensive plan involves around 2,200 changes, with 700 to 800 significant amendments requiring new legislation.
Responding to the Election Commission’s concerns, Akhtar reassured that the caretaker government had the approval of the federal cabinet to draft proposals for the FBR’s restructuring and digital transformation. An implementation committee will be established to ensure the proposals are ready for the incoming elected officials to act upon.
Akhtar assured that the restructuring would not lead to job cuts and that employees would maintain their civil service status.
She also mentioned that the transformation would take place within the current resources and budget of the FBR. The reforms, she claimed, were developed after thorough consultations with all stakeholders, including the FBR’s top officials.
