The federal government has approved the creation of new offices at the Federal Board of Revenue (FBR) Headquarters to tackle tax evasion. This move fulfills another condition set by the International Monetary Fund (IMF). A formal notification has been issued regarding the establishment of a Directorate for Special Measures, led by the Director General and two Directors.
The new directorate aims to address flaws in Pakistan’s tax system, reduce mis-declaration, and combat under-invoicing. It will also focus on developing a more coordinated strategy to tackle smuggling. The FBR notification emphasizes that these measures will simplify the tax collection process, increase revenues, and remove unnecessary obstacles.
The Director General will coordinate with relevant ministries, divisions, and other institutions on customs-related matters. Under this new structure, the Director General and Directors will work closely with field offices and provincial authorities to improve revenue collection and resolve existing issues. They will also propose measures to stop mis-declaration and under-invoicing.
Additionally, the directorate will organize training sessions for Customs Academy Pakistan staff to raise awareness of mis-declaration and under-invoicing. The Director General will oversee the entire process and report to the Member Customs Operations. This initiative comes alongside the ongoing 37-month Extended Fund Facility (EFF) program with the IMF, which includes $1.3 billion in climate financing for Pakistan.