FBR
ISLAMABAD: The Election Commission of Pakistan (ECP) has halted the caretaker government’s ambitious plan to restructure the Federal Board of Revenue (FBR), citing its controversial nature. Finance Minister Shamshad Akhtar, responding to the setback, announced that the restructuring roadmap, initially approved by all stakeholders, would be executed by the incoming elected government.
Moreover, the caretaker cabinet’s decision to revamp and digitize the tax watchdog, aiming to increase the tax share in the GDP to 18% by 2029, faced resistance from the ECP. The commission urged the caretakers to focus on “routine” and “non-controversial” matters, reversible by the elected government.
Shamshad Akhtar clarified that the entire package of legal amendments, rules, and administrative interventions, involving around 2,200 amendments, would be implemented by the next elected government. Despite ECP reservations, she emphasized that all stakeholders, including the Special Investment Facilitation Council, had endorsed the caretaker government’s competence in developing the restructuring proposals.
The proposed reforms aim to separate policy functions from operations, create oversight boards, and establish a Federal Policy Board (FPB) for policy and strategy. Oversight boards, headed by the finance minister, will ensure higher standards of performance and compliance in Customs and Inland Revenue organizations.
In response to ECP’s concerns, a letter from the commission reminded the caretaker government to limit its functions to routine and non-controversial matters. In addition, the dispute highlights the delicate balance between caretaker responsibilities and major policy decisions, with the elected government expected to navigate the FBR’s restructuring in the post-election period.
