According to a newly issued notification, the Pakistani government has met another International Monetary Fund (IMF) condition by stripping the Federal Board of Revenue (FBR) of key powers and establishing a Tax Policy Office under the Ministry of Finance.
The government has separated tax policy formulation from tax collection to enhance transparency and efficiency. Under the new law, FBR will now focus solely on collecting taxes and implementing policies rather than making them.
The new Tax Policy Office will directly report to the Finance and Revenue Minister and develop reform agendas while analyzing tax policies and proposals. It will provide policy reports on income tax, sales tax, and federal excise duty, aiming to reduce fraud and strengthen tax enforcement mechanisms.
The FBR restructuring seeks to enhance revenue generation, close tax loopholes, and improve overall economic governance.
This restructuring aligns with IMF commitments to create a more autonomous tax system.
On February 12, a visiting delegation of IMF experts met the Auditor General of Pakistan to receive a briefing on the audit procedure and public sector transparency.
The International Monetary Fund (IMF) mission is visiting Pakistan to conduct a Governance and Corruption Diagnostic Assessment (GCDA), the Ministry of Finance stated earlier.
The IMF delegation briefing that the Parliament serves as the primary forum for audit and accountability in the public sector.
“The Leader of Opposition or his nominee used to be the head of the Public Accounts Committee of the Parliament,” the delegation was informed.
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