Caretaker Finance Minister Dr. Shamshad Akhtar has strongly criticized the Federal Board of Revenue (FBR) for impeding its restructuring efforts. The situation has become increasingly complex due to prior attempts to alter the role of the Secretary Revenue Division, a position concurrently held by FBR Chairman Malik Amjed Zubair Tiwana. The Chief Election Commissioner has not yet approved these changes ahead of next month’s elections, resulting in the failure to replace Tiwana, as per a report by a national daily.
Speaking at an event at NUST on Thursday, Dr. Shamshad Akhtar acknowledged the challenges posed by the FBR but asserted that these obstacles would not deter her from overhauling the tax machinery until her term concludes. She addressed the claims suggesting that she lacked the authority to restructure the FBR, challenging those individuals to step forward and take charge.
Dr. Shamshad Akhtar highlighted the deterioration of Pakistan’s economy, attributing it to a surge in public debt and the country’s violation of the Fiscal Responsibility and Debt Limitation Act (FRDLA) 2013, resulting in substantial fiscal and trade deficits over the past two decades. She emphasized that public debt and its associated services had become unsustainable, consuming 75 percent of FBR revenue.
The Finance Minister underscored the heightened sensitivity to climate shocks due to global warming, with forecasts indicating increased variability in weather patterns in the coming decades, potentially affecting South Asia. She also identified a lack of innovation and technology as a significant challenge. Dr. Shamshad Akhtar pointed out that manufacturing, exports, and agriculture were focused on a limited range of items, failing to explore new markets, and noted that the State Industrial Financing Company (SIFC) presented an opportunity to shift this perspective.
Emphasizing the need for a fundamental overhaul of the government’s fiscal infrastructure to address the revenue-expenditure deficit, the caretaker minister stressed that effective implementation of reforms would require tackling key institutional, governance, and structural challenges.
