Islamabad, September 27, 2024 – The Federal Board of Revenue (FBR) has announced the formation of multiple working groups to develop and implement the FBR’s ambitious Transformation Plan.
This strategic move aims to bring together key stakeholders from various sectors to refine and finalize the proposals related to the modernization and digitalization of Pakistan’s tax system.
The FBR’s Transformation Plan, which has received in-principle approval, is designed to overhaul the country’s tax infrastructure, streamline processes, and enhance operational efficiency through digital solutions. The working groups, each focusing on a specific work stream, will crystallize proposals through consultations with stakeholders and draft an implementation roadmap with clear timelines. The plan is aligned with Prime Minister’s vision of improving tax administration and broadening the tax base in the country.
Key Work Streams and Responsibilities
The working groups have been structured to address various key areas, or “work streams,” of the Transformation Plan. Each group consists of high-ranking officials and experts, ensuring the involvement of relevant ministries and departments.
Work Stream-I: PRAL and Digitalization
This stream will focus on the transformation of Pakistan Revenue Automation Limited (PRAL), the FBR’s digital arm. Additionally, the group will work on the digitalization of the value chain and internal systems, aiming to create a more efficient, technology-driven tax framework.
The members of this group include the Secretary of IT, Tania Aidrus (a prominent figure in Pakistan’s digitalization efforts), Asif Peer (a technology expert), and the CEO of Pakistan Single Window (PSW), along with the Chairman of FBR. Their collective expertise is expected to revolutionize the tax administration by incorporating advanced technologies to simplify and secure transactions.
Work Stream-II: HR and Capacity Building
The second work stream is dedicated to improving human resources and operational capacities within the FBR. The focus will be on enhancing the capabilities of tax officers and establishing a Model Tax Office to create a standardized, efficient, and transparent operational framework across all tax jurisdictions in Pakistan.
Led by the Minister of the Establishment Division, this group will also include key figures such as the Chairman of FBR, Secretary of the Establishment Division, and Hamid Yaqoob Sheikh from the Finance Division. This team will play a crucial role in addressing capacity gaps and improving the overall performance of the organization.
Work Stream-III: Anti-Smuggling and Customs Reform
The third work stream is centered on combating smuggling and implementing reforms in customs procedures. It will oversee the implementation of Business Process Reengineering (BPR) and the introduction of new scanning and risk management systems to enhance the efficiency of customs operations. This stream will also focus on faceless and digital key mechanisms, which aim to reduce corruption and human involvement in customs processes.
This group will be headed by the Minister for Economic Affairs, and its members include representatives from the Ministry of Interior, the Director General of Military Operations (DGMO), and key FBR officials. The introduction of these reforms is expected to curb illegal trade and improve revenue collection from customs.
Work Stream-IV: Policy Changes
Aimed at revising and updating tax policies, the fourth work stream will focus on legislative changes and policy adjustments. This group comprises notable members, including the Minister for Law and Justice, the Attorney General of Pakistan, the Governor of the State Bank of Pakistan, and representatives from the Pakistan Business Council and Pakistan Bankers Association.
This stream will focus on making policy reforms that are aligned with the modern tax needs of the country, ensuring a fair and transparent tax system that supports economic growth and attracts foreign investment.
Work Stream-V: Donor Programs
The final work stream will coordinate with international donors to secure financial and technical assistance for the FBR’s reforms. This group will work closely with donor agencies and multilateral institutions to align their programs with the FBR’s reform agenda.
Chaired by the Minister for Economic Affairs, this group will also include the Secretary of Economic Affairs Division (EAD) and key officials from the Finance Division and FBR. Their role will be critical in securing the necessary funding and ensuring that donor-backed programs are implemented effectively.
Terms of Reference and Timeline
The Terms of Reference (TORs) for the working groups include reviewing the operational plans for each intervention under the FBR’s Transformation Plan, finalizing implementation modalities, and sequencing the proposed interventions for optimal results. The groups are also tasked with defining clear timelines and identifying any legislative changes or resources required to ensure smooth implementation.
These working groups have been given a tight timeline to submit their final implementation plans for approval. They are expected to complete their deliberations within three days and present their recommendations to the Prime Minister.
A Step Towards Modernization
The FBR’s Transformation Plan, backed by these working groups, is a significant step toward modernizing Pakistan’s tax system. With a focus on digitalization, capacity building, anti-smuggling reforms, policy adjustments, and international collaboration, this initiative aims to create a more transparent, efficient, and robust tax infrastructure, contributing to economic growth and stability in Pakistan.