ECC approves key reforms to improve FBR operations

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved major reforms for the Federal Board of Revenue (FBR) as part of its transformation plan.

These changes are likely to improve FBR operations and organisational structure, boost anti-smuggling efforts and introduce a training programme for FBR officers.

Chaired by Finance Minister Muhammad Aurangzeb, the ECC reviewed five proposals submitted by FBR, all of which had been already approved by the Prime Minister.

According to Mettis Global, these included enhancing the FBR’s operational skills, setting up a performance management system for its officers, launching capacity-building programmes, improving anti-smuggling measures, and arranging mobility and accommodation facilities for officers.

The ECC approved these proposals in principle, but with a condition that an independent evaluation of their impact would take place before the next budget.

A similar review of the results, based on key performance indicators (KPIs), will be done by the end of 2025. This is to ensure that the reforms are effectively contributing to better revenue collection and resource mobilization.

The committee also decided that the Revenue and Finance Divisions would collaborate to finalise the budget allocations and ensure smooth implementation of these proposals.

In addition to FBR reforms, the ECC approved other financial requests. One of them was Technical Supplementary Grant (TSG) of Rs16.995 billion for Ministry of Communications to settle outstanding liabilities of companies linked to Pakistan Post Office Department.

Another was TSG of Rs1.317 billion for the Election Commission of Pakistan to support upcoming local government elections in various regions including Sindh, Khyber Pakhtunkhwa, Balochistan, Islamabad and Punjab during the current fiscal year.

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