Through our publication “Pay Tax” magazine, we aim not only to illuminate economic and taxation issues but also to provide practical solutions through expert-written articles. I am optimistic that this issue will elevate the quality of discussions among various stakeholders, surpassing past efforts.

Pakistan stands at a critical crossroads, grappling with a spectrum of challenges—from political instability and public dissatisfaction to economic turmoil. In June 2024, the government of Pakistan unveiled its budget for the fiscal year 2024-25, setting an ambitious target of Rs. 11.17 trillion. However, just a month later, Chairman FBR Malk Amjad Zubair Tiwana sought early retirement, a move quickly approved by Prime Minister Shahbaz Sharif.

Tiwana’s resignation was driven by several factors: Prime Minister Shahbaz Sharif’s frustration with the slow pace of automation within the Federal Board of Revenue (FBR), Tiwana’s discontent with actions taken against FBR officials, excessive interference from the PM’s office in FBR’s daily operations, and the lack of progress in splitting the FBR into two separate entities—the Inland Revenue Service (IRS) and the Customs group.

Analyzing these factors, it becomes clear that undue pressure and interference from the PM’s office were the main reasons behind Tiwana’s decision to step down. At such a critical time, any further haste or mismanagement could worsen the situation.

Mahmood Langrial, the newly appointed chairman of the FBR, steps into the role with a wealth of experience, having worked closely with Prime Minister Shahbaz Sharif. His leadership brings a renewed sense of optimism, offering a glimmer of hope for both the business community and the upper ranks of the FBR bureaucracy to achieve a much-anticipated turnaround.

The most urgent issue facing policymakers and the government is the tangled web of Independent Power Producer (IPP) agreements. Originally meant to resolve severe power shortages, these agreements, clouded in secrecy and marred by flawed power purchase agreements and intellectual corruption, have instead led to exorbitant electricity costs, becoming an unbearable burden on the public.

Meanwhile, the economy continues to lag behind its Asian neighbors, plagued by low productivity growth and an unsustainably high external debt burden. To make matters worse, the growing trust deficit between the public and state institutions is further destabilizing an already fragile situation.

What’s needed now is better fiscal management and coordinated efforts from all stakeholders to achieve a better outcome for the country.