The Special Investment Facilitation Council (SIFC), a joint civilian and military initiative, has sanctioned a comprehensive plan to restructure the Federal Board of Revenue (FBR) and PRAL and introduce a new, simplified scheme for retailers.
The SIFC’s decision to enhance operational efficiency is set to be implemented within 15 days. During its latest meeting, chaired by Prime Minister Anwaarul Haq Kakar, the SIFC’s Apex Committee also reviewed and approved proposals from the Finance Division. Key among these is the cessation of government subsidies on fertilizer and agriculture tube-wells and funding for provincial public sector universities, starting from the fiscal year 2024-25.
Finance Minister Dr Shamshad Akhtar recommended a new governance structure for the FBR, proposing the formation of separate Federal Boards for Customs and Inland Revenue. The appointment of Directors General from respective cadres to head these boards was also discussed.
Comprehensive Reforms and Oversight
The reform agenda focuses on strengthening governance through accountability and oversight. Notable initiatives include reconstitution of the Federal Policy Board under the finance minister, establishing a Tax Policy Office with expert HR, and implementing oversight boards chaired by independent professionals.
The board, comprising both public and private sector members, aim to ensure integrity and the right expertise in operations. Moreover, the Governor of the State Bank of Pakistan (SBP) advised placing the audit functions of the Federal Board of Customs (FBC) and the Federal Board of Inland Revenue (FBIR) under an independent Tax Policy Unit (TPU).
Read: Evaluating the Potential Overhaul of Pakistan’s FBR: Prospects and Challenges
The Apex Committee has also agreed in principle to the FBR’s restructuring plan. This involves forming a special committee led by the Finance Minister and including key secretaries. This committee will facilitate inter-ministerial consultations and move a summary to the cabinet for approval within two weeks.
The PRAL restructuring, in collaboration with the National Database and Registration Authority (Nadra), received approval. The restructuring will focus on enhancing technical HR capabilities, broadening the tax base, IT integration, and using advanced technologies such as Artificial Intelligence to expand and develop mathematical models.
Additionally, Chief of Army Staff Gen Asim Munir has directed provincial chiefs to initiate a nationwide crackdown against the unethical hoarding of fertilizers, underscoring the need for transparency in operations to support farmers nationwide.
 has approved restructuring plan for the Federal Board of Revenue (FBR) and PRAL, aiming to improve operational efficiency and introduce a new scheme for retailers.){kind=link}