Islamabad, April 9, 2025 – The Federal Board of Revenue (FBR) on Wednesday introduced new reward rules for officers within the Inland Revenue Service (IRS) and Pakistan Customs Service (PCS), but the move has been met with significant criticism from field formations.
The FBR issued separate SROs No. 576 and 580 for PCS and IRS officers in BS-17 and above, detailing the framework under which rewards will be granted. These rules are part of the FBR’s broader effort to implement the FBR Transformation Plan, 2024, and are expected to be incorporated into the statute within three days.
The new rules state that “Monetary Rewards under the FBR Transformation Plan, 2024, shall be sanctioned to cadre officers of Inland Revenue (BS-17 and above) as per their ranking under the performance management regime approved in the FBR Transformation Plan.” However, both IRS and PCS officers have expressed strong opposition, arguing that the reward system is biased and based on favoritism.
The Inland Revenue Service Officers Association (IRSOA) has particularly voiced concerns, claiming that the reward rules undermine the professional integrity and stability of the IRS. According to the IRSOA, the reward scheme unfairly targets the IRS, claiming that no other civil service in Pakistan is subject to such intrusive and discriminatory evaluation systems. The association believes that the IRS is being singled out for harsh treatment, which they deem unacceptable.
One of the major points of contention is the subjectivity of the evaluation process under the new rules. The IRSOA highlighted that the reward system creates opportunities for personal biases to influence outcomes, with only a limited number of officers being eligible for top-tier rankings. Under the system, out of 50 officers, only 10 can be graded as category-A, which effectively labels the remaining 40 officers as corrupt. This arbitrary grading system, the IRSOA argues, imposes an unfair stigma and forces officers to accuse their peers of lacking integrity to meet evaluation criteria.
The IRSOA also warned that the reward rules could have a demoralizing effect on officers, damaging morale and professional relationships within the FBR. The association expressed concern that such a system would further tarnish the reputation of the FBR, which already faces scrutiny due to its association with state revenue collection.
In light of these concerns, the IRSOA has urged the FBR to reconsider the reward rules, calling for a more transparent and fair approach. They have asked the FBR to engage in meaningful dialogue with stakeholders to address their grievances and revise the rules to better support the integrity and functioning of the organization. According to the IRSOA, the current system is not a reform but rather an ill-conceived move that could worsen existing challenges.