Finance ministry moves to establish Tax Policy Office, advertises six key positions

The Ministry of Finance is moving forward with its commitment to the International Monetary Fund (IMF) by establishing a Tax Policy Office (TPO) to enhance tax policy analysis. To operationalize this office, the government has advertised six key positions, including that of the Director General (DG) of the TPO, which will report directly to the finance minister. 

According to reports, this step is part of Pakistan’s broader strategy to implement reforms under the $7 billion Extended Fund Facility (EFF) agreement with the IMF.

The positions advertised include directors specialising in economic analysis, business taxation, personal taxation, international taxation, and direct/indirect taxation. These professionals will be appointed at Special Professional Pay Scales (SPPS), with the DG positioned at SPPS-1 and the directors at SPPS-II. 

The roles require candidates to have extensive experience in tax policy, fiscal management, or public finance, with qualifications including a master’s degree in related fields and at least 12 years of experience.

The creation of the TPO is a long-awaited reform aimed at separating tax policy from revenue administration. This division is intended to prevent policy capture by the Federal Board of Revenue (FBR) and allow the FBR to focus more effectively on revenue collection. 

The government had previously struggled to implement this separation due to resistance from within the FBR, but with this initiative, it aims to ensure a more transparent and efficient tax policy development process.

As part of the restructuring, the TPO will be responsible for analysing tax policies, forecasting economic and revenue trends, and managing international tax treaties. It will also engage with stakeholders, including government bodies, international organizations, and the private sector, to ensure that tax reforms align with the country’s economic and social priorities.

This move follows an agreement made by Pakistan to establish a TPO under the finance minister’s direct supervision as part of its commitments to the IMF. The ministry had originally planned to set up the office in the first quarter of fiscal year 2025, but the timeline was delayed and the TPO was formally announced just ahead of the IMF’s review mission. 

With the creation of the TPO, Pakistan also aims to enhance coordination with the FBR, ensuring that tax policies support broader fiscal and economic strategies. The office will help ensure that proposed reforms are well-reasoned, evidence-based, and aligned with Pakistan’s national priorities. 

Furthermore, the TPO will oversee the implementation of tax policies and provide regular updates and recommendations to the finance minister on the progress and challenges of these reforms.