The Pakistan government on Monday appointed veteran tax consultant Shabbar Zaidi to the key post of Federal Board of Revenue chairman, days after the removal of Jahanzeb Khan from the position amid vital bailout negotiations with the IMF.
Officials said initially Ahmad Mujtaba Memon, who is serving as the finance additional secretary, was tipped to become the new chief of the tax collection body. His name was endorsed by advisor on finance Dr Abdul Hafeez Shaikh. However, his nomination was not approved by Prime Minister Imran Khan and his Cabinet.
We have appointed Shabbir Zaidi as chairman of FBR, Khan told reporters here.
Jahanzeb Khan was removed as FBR head last week amidst reports that the tax collection body is heading to miss its targets by whopping Rs 350 billion by end of the current fiscal year on June 30.
Zaidi is considered as highly professional who has been demanding stern laws to assess and collect taxes.
He is a senior partner of accountancy firm A F Ferguson & Co, president of the Institute of Chartered Accountants of Pakistan and chairman of the South Asian Federation of Accountants.
More From This Section
His biggest challenge will be to increase tax base, impose taxes on rich and bring in tax net the hidden assets.
Head of IMF Mission to Pakistan Ernesto Rigo is currently in Islamabad as the country hopes to strike a deal with the global lender for a three-year bailout package totalling around USD 6.5 billion.
The IMF is pushing Pakistan to embrace a more flexible rupee policy to end repeated boom-and-bust cycles, with many analysts arguing that the local currency is overvalued. The government has also been frustrated by the low tax collection rates during its first year in office, with the disappointing figures threatening the prime minister's promises to build a welfare state for the poor.
The SBP in March cut its economic growth estimates, forecasting the economy would expand 3.5 to 4 per cent in the 12 months to the end of June, well short of a government target of 6.2 per cent. The IMF paints a gloomier picture, predicting growth of 2.9 per cent in 2019 and 2.8 per cent next year.