ISLAMABAD: On Tuesday, the country’s top electoral authority intervened to prevent the caretaker prime minister from proceeding with the overhaul of the Federal Board of Revenue (FBR), immediately following the federal cabinet’s decision to approve the plan.
The Election Commission expressed concern over the cabinet’s decision, asserting that it is the constitutional duty of the ECP to monitor the actions of the caretaker government beyond its prescribed responsibilities.
In a letter to the interim Prime Minister’s Secretary Khurram Agha, the electoral watchdog emphasized that the caretaker government’s jurisdiction is clearly defined in the Constitution and the Election Act.
The coalition government, which governed for 16 months after the removal of ex-PM Imran Khan, amended the Election Act to empower the interim setup to make significant policy decisions related to multilateral and bilateral projects, as allowed under Section 230 of the Election Act.
The ECP reminded the interim prime minister that the restructuring of the FBR and major reforms constitute significant policy decisions, advising him to leave such matters for the incoming government. The electoral watchdog urged caution in implementing reforms on a large scale within the FBR.
Earlier in the day, the federal cabinet, led by Caretaker Prime Minister Anwaarul Haq Kakar, approved the restructuring and digitization of the FBR based on the recommendations of the Revenue Division.
The reform plan included the establishment of a Federal Tax Policy Board within the Revenue Division, tasked with formulating tax policy and coordinating among stakeholders.
The plan also proposed the separation of Customs and Inland Revenue departments, each operating under specific director generals with authority over administrative, financial, and operational matters. The digitization of departments and adherence to global transparency practices were highlighted as key aspects of the reform.
Caretaker PM Kakar emphasized the need to avoid conflicts of interest in appointing experts from the private sector and endorsed the presentation of a draft for necessary legislation and approval in the upcoming session of the newly elected parliament, in accordance with the cabinet committee’s recommendations for reforms. The cabinet also endorsed decisions from its Cabinet Committee on Legal Affairs but deferred amendments related to the IRSA Act 1992 for further debate and resubmission by the Ministry of Water Resources.
