Prime Minister Shehbaz Sharif has directed the engagement of an international consultant to medernise the Federal Board of Revenue (FBR).
The directive was issued during the Prime Minister’s detailed review of FBR’s administrative operations on Tuesday, marking a shift from the restructuring strategy previously endorsed by the interim administration.
The Prime Minister emphasized the need for rapid action, suggesting that if required, exemptions from the Public Procurement Regulatory Authority’s competitive bidding norms should be secured.
This development hints at a potential deviation from the FBR restructuring plan sanctioned by the caretaker government.
Dr. Shamshad Akhtar, the former caretaker Finance Minister, who attended the meeting virtually, shared her restructuring proposal and is expected to present it again to the Prime Minister.
The focus of hiring an international consultant is to digitize and modernize the FBR processes to minimize direct interactions between tax officials and taxpayers.
However, this decision raises concerns about the effectiveness of two existing foreign loans, totaling $700 million from the World Bank and the Asian Development Bank, aimed at domestic revenue mobilization and FBR modernization.
Additionally, the Prime Minister expressed dissatisfaction with the delay in implementing his directives from eight months prior, which included the installation of scanners in various manufacturing sectors, notably tobacco, to monitor production.
Despite claims of a lack of funds for these scanners, it was revealed that the FBR had not requested funding, although there was a request for increased salaries for the tax body’s staff.
The Prime Minister also ordered the recruitment of skilled personnel to manage the track and trace system for major manufacturing sectors to curb underreporting.
Emphasizing digitization as a top priority, he directed the immediate enforcement of digital invoicing initiatives.
It is good decission because i think we have not mentality of any good decissions