Caretaker Finance Minister Dr. Shamshad Akhtar has slammed the Federal Board of Revenue (FBR) for obstructing its restructuring process.
The issue has become quite complicated with earlier attempts to change the role of Secretary Revenue Division which is also held by FBR Chairman Malik Amjed Zubair Tiwana. The Chief Election Commissioner has yet to allow such changes before elections next month, so the attempt to replace Tiwana has failed, reported a national daily.
Addressing an event at NUST on Thursday, Dr. Shamshad Akhtar said the FBR was making things difficult but assured that it won’t deter her from restructuring the tax machinery until her last day in office.
She said some people claim she did not have the authority to restructure the FBR. Those people should then come forward and take it from here.
Shamshad said Pakistan’s economy has worsened as a result of the rise in public debt and because the country violated the Fiscal Responsibility and Debt Limitation Act (FRDLA) 2013 with massive fiscal and trade deficits during the last two decades. The public debt and associated services became unsustainable, consuming 75 percent of FBR revenue.
Finance Minister mentioned that sensitivity to climate shocks has increased as a result of global warming, with forecasts that weather patterns will become even more variable in the next decades. South Asia, according to some scientists, may suffer. Another issue is the lack of innovation and technology.
She added that manufacturing, exports, and agriculture were centered on a small number of items and failed to reach new markets, adding that the SIFC was a blessing in disguise for shifting the perspective.
The caretaker minister said a fundamental revamp of the government’s fiscal infrastructure was necessary to close the revenue-expenditure deficit.
Effective execution of reforms will require addressing key institutional, governance, and structural challenges, she added.
