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. This budget announcement marked a significant step in the country’s economic planning, reflecting the government’s efforts to steer the economy towards growth and stability.

However, shortly after the budget presentation, a notable development occurred within the Federal Board of Revenue (FBR). Malik Amjad Zubair Tiwana, the Chairman of the FBR, submitted his resignation to the Prime Minister. This resignation, coming just over a month after the budget’s announcement, has raised questions and concerns about the implementation of the fiscal plan.

Malik Amjad Zubair Tiwana is a seasoned bureaucrat, holding the position of a 21st-grade officer. His resignation is particularly noteworthy as he was scheduled to retire in January 2025. Tiwana’s departure from the FBR comes at a critical juncture, as the organization plays a pivotal role in achieving the revenue targets set forth in the budget.

Sources indicate that multiple factors contributed to Malik Amjad Zubair Tiwana’s resignation from his position as Chairman of the Federal Board of Revenue (FBR). These factors are collectively referred to under the term “Shahbaz Speed.”

“Shahbaz Speed” is a colloquial expression used to describe the fast-paced and high-pressure working style associated with Prime Minister Shahbaz Sharif’s administration. It implies a relentless drive for rapid progress and efficiency in government operations. While this approach has been praised for its potential to accelerate development and reform, it has also been criticized for creating a demanding and often stressful work environment.

Prime Minister Shahbaz Sharif expressed dissatisfaction with the slow pace and progress of automation within the Federal Board of Revenue (FBR). This sentiment played a significant role in the recent resignation of Malik Amjad Zubair Tiwana, the outgoing Chairman of the FBR.

Tiwana, however, had his own reasons for the delays in the automation process. He pointed out that multiple companies, including McKinsey, were involved in the project, contributing to its slow pace. The complex coordination required between these organizations made rapid progress challenging.

Another significant factor in Tiwana’s resignation was his discontent with the actions taken against FBR officials. Various agencies had been conducting inquiries into the conduct of these officials, a process Tiwana believed would lead to chaos and negatively impact the achievement of revenue targets. He felt that these investigations were disruptive and counterproductive.

It has also been observed that the Prime Minister’s Office was heavily involved in the affairs of the Federal Board of Revenue (FBR). Tiwana was frequently summoned to the Prime Minister’s Office, where he often had to wait for several hours to meet with the Prime Minister. As a result, he was unable to dedicate sufficient time to his responsibilities at the FBR.

Tiwana faced pressure to extend these actions to officers below the rank of 18th grade, which further exacerbated his concerns. He believed that such measures would only add to the turmoil within the FBR, making it even harder to meet the ambitious revenue goals set by the government.

Sources reveal that Malik Amjad Zubair Tiwana, a 21st-grade officer, often presided over meetings with officers of the 22nd grade. This situation created discomfort among the higher-grade officers, many of whom worked in various ministries and were required to report to Tiwana.

The senior officers found it challenging to report to someone of a lower grade, leading to an awkward and potentially strained working environment. This hierarchical imbalance contributed to the internal friction within the Federal Board of Revenue (FBR).

To mitigate these issues, the government could have considered promoting Tiwana to the 22nd grade at the outset. Such a promotion might have alleviated some of the tension and facilitated smoother interactions between Tiwana and the senior officers. This step could have improved the overall efficiency and harmony within the FBR, helping to better align the organization with the government’s ambitious fiscal targets.

Another significant factor in Malik Amjad Zubair Tiwana’s resignation was the slow progress in bifurcating the Federal Board of Revenue (FBR) into two separate entities: the Inland Revenue Service (IRS) and the Customs group. The government was keen on expediting this bifurcation, but under Tiwana’s leadership, the process was progressing very slowly or not at all.

Tiwana faced criticism for the delay, as the government prioritized this restructuring to enhance the efficiency and effectiveness of tax administration. However, the bifurcation process is inherently complex and requires careful planning and execution. Rushing through such a significant organizational change could lead to unforeseen complications and inefficiencies.

Given the intricacies involved in dividing the FBR, it is crucial for the government to approach this transition methodically rather than hastily. A well-planned and deliberate approach would ensure a smoother division, minimizing disruptions and maximizing the potential benefits of having distinct IRS and Customs entities.

Tiwana’s resignation underscores the challenges and pressures associated with managing major structural changes within a key government agency. It highlights the need for a balanced strategy that considers both the urgency of reform and the complexities involved in its implementation.

Malik Amjad Zubair Tiwana is known for his preference to focus on his work rather than seek media attention. He is a man who prefers to operate behind the scenes, rarely interacting with the media or the press. This characteristic might have limited the public’s understanding of his efforts and achievements.

Given his inclination to work quietly, the government could have leveraged this trait to harness more of his potential. However, Tiwana’s resignation also highlighted another aspect of his professional demeanor: his difficulty in effectively communicating his stance and handling pressure. He was not particularly strong at articulating his position or persuading others through dialogue.

These communication challenges may have impacted his ability to navigate the complex and high-pressure environment of the Federal Board of Revenue (FBR). As a result, despite his dedication and hard work, Tiwana struggled to manage the demands and expectations placed upon him by both the government and his colleagues.

With Malik Amjad Zubair Tiwana’s resignation now submitted, several members within the Federal Board of Revenue (FBR) are actively competing for the position of Chairman. However, the challenges awaiting the new Chairman are significant and multifaceted.

The new Chairman will need to operate under the fast-paced, high-pressure working style known as “Shahbaz Speed,” a hallmark of Prime Minister Shahbaz Sharif’s administration. This approach demands rapid progress and exceptional efficiency, adding to the already strenuous conditions.

The new Chairman will have to navigate the stringent requirements imposed by the International Monetary Fund (IMF). Balancing compliance with these conditions while maintaining economic stability will be a critical task.

Restructuring the FBR, including the bifurcation into the Inland Revenue Service (IRS) and the Customs group, also remains a complex and demanding task. This restructuring aims to improve the organization’s functionality but must be handled with precision to avoid disruptions.

Combatting corruption within the FBR is another crucial priority. Restoring trust and integrity in the organization is vital for its effectiveness and credibility.

As this article goes to print, it is likely that additional reasons for Malik Amjad Zubair Tiwana’s resignation may emerge. The complexities and challenges surrounding his departure suggest there could be further undisclosed factors contributing to his decision.

Speculations and revelations may surface, shedding more light on the internal dynamics and pressures within the Federal Board of Revenue (FBR). These could include details about interpersonal conflicts, additional administrative challenges, or other external influences that played a role in Tiwana’s resignation.