ISLAMABAD: A new committee formed by the prime minister to identify flaws and failures of the Track and Trace System (TTS) is likely to submit its report today (Tuesday). The committee, headed by Finance Secretary Imdadullah Bosal, will likely hold the TTS project directors responsible.

The TTS is a software-based solution for tracking vehicles, loading units, shipments, and products throughout the entire supply chain, from supplier to consumer.

Prime Minister Shehbaz Sharif tasked Mr Bosal to identify officials involved in the delayed implementation of the system. The federal cabinet made the decision last week after rejecting an earlier report submitted by a committee led by former finance secretary Tariq Bajwa.

Sources in the finance ministry said the new committee has found that the project’s poor implementation resulted in serious lapses and delays.

The committee will also determine the reasons for the failure to integrate the tracking system throughout the supply chain.

The TTS was implemented by a consortium through bidding by the Federal Board of Revenue (FBR). It was initially implemented in 2021 in the cigarette industry, followed by the sugar, cement, and fertiliser sectors.

The sources also noted issues between the project directors and the consortium, particularly disagreements over the concessions granted for importing necessary equipment and discrepancies in setting up the plants compared to the initial designs proposed by the consortium.

Meanwhile, the earlier committee led by Tariq Bajwa, in its report, did not find any wrongdoing in awarding the contract.

However, it proposed that the FBR establish a dedicated enforcement force for the Track and Trace project to enhance its effectiveness.

That committee also recommended that the government notify the supervisory committee, to be chaired by the prime minister or the finance ministry, to oversee the entire project implementation. It said the supervisory body should be empowered to take action against stakeholders for delays.

It also proposed that the FBR might be asked to strengthen its data analytics capability to match production data with sales tax returns of companies or notified units.

Published in Dawn, April 30th, 2024