ISLAMABAD: Care­ta­ker Prime Min­i­ster Anwa­arul Haq Kakar on Mon­day directed the authorities concerned to formulate a comprehensive strategy, in consultation with all stakeholders, to improve the performance of the Federal Board of Revenue (FBR).

According to the Prime Minister Office (PMO), Mr Kakar presided over a meeting to mull over the measures for improving the performance of the tax authority.

During the meeting, the PM said utilisation of modern technology was inevitable to improve the taxation system.

The meeting was brie­f­ed on the measures to wi­d­en the tax net and digitisation of the taxation system.

The participants also deliberated upon different proposals aimed at restructuring the FBR.

The prime minister said that the revenue collecti­on was like a backbone for the national economy.

He told the meeting that various effective measures had been taken recently to curb smuggling, though it required more hard work to achieve the desired results.

Caretaker Finance Mi­­nister Dr Shamshad Akh­tar, Adviser to PM Ahad Cheema, FBR chairman, federal finance secretary and relevant senior officers attended the meeting.

Meanwhile, media repo­rts said the FBR has presented an ambitious plan to the International Mone­ta­ry Fund to bring 1.5 mill­i­­on new taxpayers into the net by the end of June 2024.

The blueprint of the strategy, which was shared during technical-level discussions with IMF officials, represents a significant milestone in Pakistan’s efforts to bolster its fiscal framework, the reports said.

The technical team has engaged in multiple rounds of discussions with tax officials from the FBR), focusing on the tax performance in the first quarter. The IMF representatives have expressed satisfaction with the tax collection efforts, an official of the FBR had told Dawn.

IMF’s technical staff initiated the first evaluation of the short-term $3bn standby arrangement on Nov 2, which concluded on Nov 10.

The majority of the targets appear to be on track, paving the way for the release of a $710m tranche in December.

“We have shared our projections for revenue collection in the next eight months with IMF,” the official had said, adding that no demand came from the Fund to take fresh tax measures.

FBR’s top officials have assured the IMF that the projected revenue collection target of Rs9.415tr for FY24 will be met without the need for any additional tax measures.

Furthermore, the official dismissed the rumours that the IMF is demanding an increase in the revenue collection target or plans to impose more taxes on traders and the real estate sector.

Published in Dawn, November 14th, 2023