The government has withdrawn key power of tax policymaking from the Federal Board of Revenue (FBR), fulfilling one of the major conditions set by the International Monetary Fund (IMF). The FBR will continue to collect tax and will have no role in policymaking, which will now be supervised by Finance Minister Muhammad Aurangzeb. Accordingly, the government has established a Tax Policy Office, which will report to the Ministry of Finance and Revenue. The new office will analyse the government’s reform agenda and tax proposals. The government had assured the IMF of maintaining autonomy in tax policy and collection. Efforts will be made to minimise tax fraud and plug loopholes to improve revenue collection. The Pakistan government had given an undertaking to the IMF that it would establish Tax Policy Office and bifurcate responsibilities.