The Pakistani government has complied with another requirement set by the International Monetary Fund (IMF) by revoking significant powers from the Federal Board of Revenue (FBR).

This move is part of the government’s efforts to meet the fiscal conditions outlined by the IMF.

A newly issued notification reveals that the Pakistani government has withdrawn key powers from the Federal Board of Revenue (FBR) in response to demands from the International Monetary Fund (IMF).

This decision aims to enhance transparency and efficiency within the tax system by separating tax policy formulation from tax collection.

Under the revised structure, the FBR will now concentrate solely on tax collection and implementation, while a newly established Tax Policy Office under the Ministry of Finance will handle policy development.

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This office will report directly to the Finance and Revenue Minister and will be tasked with analyzing tax policies, proposing reforms, and generating reports on income tax, sales tax, and federal excise duty.

The restructuring of the FBR is intended to bolster revenue generation, close tax loopholes, and improve overall economic governance, aligning with the IMF’s commitment to creating a more autonomous tax system.