ISLAMABAD: The Pakistan government has fulfilled another International Monetary Fund (IMF) condition by withdrawing key powers from the Federal Board of Revenue (FBR) and establishing a Tax Policy Office under the Ministry of Finance, as per a newly issued notification.
As per details, 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 tax collection and implementation rather than policymaking.
The new Tax Policy Office will report directly to the Finance and Revenue Minister and will be responsible for developing reform agendas and analyzing tax policies and proposals.
The office will provide policy reports on income tax, sales tax, and federal excise duty, focusing on reducing fraud and strengthening tax enforcement mechanisms.
The FBR restructuring aims to enhance revenue generation, minimize tax loopholes, and improve overall economic governance.
The restructuring of FBR aligns with IMF commitments to ensure a more autonomous tax system.
Read more: IMF mission visits, AGP, FBR, briefed on transparency, digitalization
On February 12, a visiting delegation of IMF experts called on the Auditor General of Pakistan to get briefing over the audit procedure and transparency in the public sector.
A mission of the International Monetary Fund (IMF) is on the visit of Pakistan to conduct a Governance and Corruption Diagnostic Assessment (GCDA), the Ministry of Finance earlier said in a statement.
The IMF delegation was briefed that the Parliament has been the major forum of audit and accountability in public sector and according to a parliamentary tradition, the opposition entrusted to audit the government institutions.
“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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