Pakistan’s ECC recommends third-party evaluation for tax collection authority's transformation

The Economic Coordination Committee (ECC) of Pakistan, it's highest economic decision-making body, has advised a third-party impact evaluation of the Federal Board of Revenue (FBR) Transformation Plan before the next financial budget.

A similar evaluation will be conducted at the end of 2025 to assess the plan's effectiveness in enhancing revenue generation and resource mobilization.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired the ECC meeting held at the Finance Division. The ECC reviewed five summaries submitted by the FBR — Pakistan's tax collection authority — covering key areas such as enhancing operational expertise, performance management, capacity building, anti-smuggling measures, and mobility and transit accommodation for FBR officers.

All five proposals received in-principle approval with the proviso of the third-party evaluation.

The ECC also decided that the revenue division and finance division would jointly work out the budget allocation and release mechanisms for these proposals.

Under the Transformation Plan, FBR aims to modernize its framework to meet international standards. The plan seeks to broaden the tax net and eliminate the category of 'non-filers'. Additionally, FBR will enhance compliance and enforcement through new measures.

Additionally, the ECC approved a Technical Supplementary Grant (TSG) of PKR 16.99 billion for the Ministry of Communications (Postal Services Wing) to clear verified pending liabilities of the Pakistan Post Office Department. Another TSG of PKR 1.32 billion was approved for the Election Commission of Pakistan for local government bye-elections in Sindh, Khyber Pakhtunkhwa, Balochistan, Islamabad, and Punjab during fiscal year 2024-25.

These decisions reflect the ECC's commitment to improving Pakistan's revenue generation and resource mobilization efforts.