ISLAMABAD: The Federal Board of Revenue (FBR) and the Supreme Court Bar Association (SCBA) held discussions with the International Monetary Fund (IMF) mission on Monday, addressing a range of critical issues including tax reform, enhanced revenue collection, judicial efficiency, contract enforcement, and the protection of property rights.
Currently in Islamabad, the IMF’s Governance and Diagnostic Assessment teams are meeting with key government authorities to evaluate the governance frameworks of various ministries tied to fiscal policy, tax strategy, anti-corruption, procurement, auditing, and anti-money laundering efforts.
According to sources, the IMF technical teams have begun reviewing the FBR’s indigenous tax transformation plan—approved last year by the Prime Minister—which seeks to bridge the tax gap, currently estimated at over Rs7 trillion. The diagnostic review is being carried out by four to five specialized teams, each focused on specific sectors like taxation, finance, and anti-corruption.
During Monday’s meeting, the IMF’s tax-focused team received its initial briefing on FBR’s tax reform roadmap. Key elements of the plan include a pivot toward digitalization, improved enforcement, and the transformation of existing tax offices into Model Tax Offices (MTOs). The strategy also aims to strengthen enforcement and intelligence units to curb smuggling and expand the tax net.
“We’ve provided the technical team with an initial overview,” an FBR official said, adding that further briefings will continue over the next two days. A final meeting with the FBR chairman is scheduled after the initial round concludes. The FBR emphasized that the new governance and enforcement measures are expected to significantly boost tax collection in the upcoming fiscal year.
One of the plan’s core objectives is to reduce the volume of cash circulating in the economy. Pakistan currently has 25% of its currency in circulation compared to 14% in Bangladesh and India, and just 7% in Malaysia. Proposed steps include barring input tax claims on sales to unregistered businesses and utilizing digital invoicing to monitor transactions. Non-compliant entities will face notices and stringent penalties.
Judicial Reforms and Legal Efficiency
Separately, another IMF delegation met with representatives of the Supreme Court Bar Association (SCBA), along with leaders from the Balochistan and Sindh High Court Bar Associations. Discussions centered on strengthening judicial efficiency, ensuring reliable contract enforcement, and securing property rights.
SCBA President Mian Mohammad Rauf Atta emphasized that economic and political stability, along with sound governance, are vital to upholding the rule of law. He highlighted two major ongoing efforts to enhance judicial efficiency—one within the judiciary itself, and the other through legislative reforms.
On the judicial front, he outlined several key initiatives led by the Chief Justice of Pakistan, including the introduction of an e-filing system to replace traditional methods, revamped case management procedures, expedited resolution of backlog cases, and video link facilities for hearings in the Supreme Court.
On the legislative side, he pointed to the recently enacted 26th Constitutional Amendment, which aims to strengthen judicial independence and streamline legal processes.
