Chairman Federal Board of Revenue (FBR) Malik Amjad Zubair Tiwana has requested early retirement after being unable to reconcile with the Prime Minister’s Office (PMO).
Sources told, that Shehbaz Sharif in his last few meetings continuously criticized Tiwana’s performance. The chairman even missed his Monday meeting at PM house.
Tiwana has opted for retirement effective August 15th, six months ahead of his superannuation. He had been considering this move even before the budget due to constant pressure and interference from PMO.
Tiwana also sent his retirement request to the Finance Division on Monday evening. If his retirement request is accepted, Tiwana’s departure will ignite competition among the Customs Group, Inland Revenue Service (IRS), and the powerful Pakistan Administrative Service (PAS) for the chairman position.
Direct intervention from the Prime Minister’s Office and the prime minister’s displeasure with tax affairs prompted Tiwana’s decision. A rough meeting last Friday, where the prime minister expressed frustration over various FBR issues, forced Tiwana to call it quits.
Differences emerged over the construction of FBR office buildings under public-private partnerships and the ongoing digitization project led by foreign consultant McKenzie. The prime minister was dissatisfied with the FBR’s cooperation with McKenzie, which reported significant discrepancies in sales tax data and identified 4.9 million potential non-filers.
Concerns were also raised about the chairman’s incomplete reporting to the prime minister, delaying decision-making. Pending projects, including sales tax harmonization, simplified tax returns, IT equipment procurement under a World Bank project, and focus on point of sale and track and trace systems, further strained relations.
Tiwana has so far led the FBR through a challenging period and achieved a 30 percent increase in tax collection last fiscal year, though still falling short of the target by Rs. 104 billion.
If Tiwana’s request is approved, potential successors include Hamid Atiq Sarwar (IRS), Mukaram Jah Ansari, Faiz Chaddar (Customs), and Secretary Power Rashid Langrial (PAS). The new chairman will face the challenge of navigating the Prime Minister’s Office’s direct intervention, managing the McKenzie project, and achieving the Rs. 13 trillion tax collection target under IMF oversight.
