The Prime Minister of Pakistan has established five working groups to advance the Federal Board of Revenue’s (FBR) Transformation Plan. These groups are tasked with refining various proposals in consultation with relevant stakeholders and devising an implementation roadmap with clear timelines for the indicated work streams of the transformation plan.
The aim of these working groups is to ensure a thorough review of the proposed changes and finalize the strategies for effectively modernizing the FBR’s operations. The decision to create these groups reflects the government’s focus on improving revenue collection, digitizing tax processes, and strengthening anti-smuggling efforts.
Details of the Working Groups
The first working group is responsible for areas including PRAL Transformation, Value Chain Digitalization, and Internal System Digitalization. It is composed of five key members, including the Secretary of IT, Tania Aidrus; Chairman of FBR, Asif Peer; and the CEO of Pakistan Single Window (PSW). Their primary task is to provide recommendations to enhance the digital integration of FBR’s processes, aiming to make tax-related activities more efficient and transparent.
The second group focuses on human resources, capacity enhancement, and optimizing operations through the Model Tax Office. This group comprises six members, including the Minister for the Establishment Division, the Chairman of FBR, Ali Sarfaraz Hussain, and other senior officials from the Establishment and Finance Divisions. Their objective is to improve the capabilities of FBR staff and streamline operational structures to boost overall performance.
A third working group has been formed to tackle challenges related to anti-smuggling measures, business process reengineering (BPR), and the use of technology such as the Risk Management System (RMS) and scanners in customs. This seven-member group includes the Minister for Economic Affairs Division (EAD), the Chairman of FBR, the Secretary of Interior, Dr. Saeed Jadoon (a former FBR member), and leaders from the Customs department and PSW. Their focus will be on strengthening border controls, implementing advanced technology, and moving towards faceless and digital key solutions for customs operations.
The fourth working group is tasked with policy changes, particularly those that impact the broader tax ecosystem. It includes the Minister for Law and Justice, Dr. Tauqir Hussain Shah, the Attorney General of Pakistan, the Chairman of FBR, the CEO of Pakistan Business Council, the President of the Pakistan Bankers Association, the Governor of the State Bank of Pakistan (SBP), and the Chairman of NADRA. This group’s work is centered on refining tax policies, ensuring legal compliance, and aligning regulatory frameworks to support the FBR’s modernization efforts.
The fifth group addresses the integration and coordination of donor-funded programs that support the FBR’s transformation. The members include the Minister of EAD, the Chairman of FBR, the Secretary of EAD, the Secretary of Finance, and the Member (Reforms) of FBR. They will focus on aligning external support with the FBR’s strategic goals, facilitating resource mobilization, and ensuring transparency in the use of donor funds.
Terms of Reference (ToRs) and Objectives
The terms of reference for these working groups include reviewing and finalizing specific operational plans for all proposed interventions under the FBR Transformation Plan. They are also tasked with suggesting improvements where necessary, determining the most effective implementation methods for each intervention, and recommending the order in which these initiatives should be rolled out for optimal results.
The groups must finalize timelines for each proposed intervention, clearly identifying any required legislative changes, approvals, and resources needed for implementation. Their deliberations and final recommendations are to be compiled into a comprehensive plan for approval by the Prime Minister within three days.
Significance of the FBR Transformation Plan
This transformation plan is a critical part of the government’s broader efforts to modernize Pakistan’s revenue collection system, increase efficiency, and support economic growth. By streamlining processes, enhancing digital integration, and addressing policy and structural challenges, the plan aims to improve FBR’s effectiveness in tax administration and compliance.
The creation of these working groups underscores the government’s commitment to implementing systematic reforms that align with global best practices, enhancing transparency and accountability in revenue management. As the groups move forward with their deliberations, their recommendations will play a vital role in shaping the future direction of the FBR and ensuring that Pakistan’s tax system is well-positioned to support sustainable economic growth.