Hafeez Shaikh not given Revenue Division portfolio

ISLAMABAD:

Prime Minister Imran Khan has withdrawn the portfolio of Revenue Division from the newly-inducted Federal Minister Dr Abdul Hafeez Shaikh -- a move that may have to be eventually reversed for smooth conduct of official business.

The move has clipped the wings of Shaikh for the second time in one-and-a-half years, as earlier Prime Minister Imran Khan had withdrawn the portfolio of the Economic Affairs Division.

It was also for the second time that the prime minister withdrew the Revenue Division portfolio from Shaikh. Earlier, the prime minister had done it in July last year but had to reverse his decision within 24 hours.

Finance, Revenue and Economic Affairs have remained an integral part of the finance ministry and any minister assuming the charge of finance cannot effectively work without having the three portfolios under him.

“The President, on the advice of the Prime Minister, has been pleased to appoint Dr Abdul Hafeez Shaikh as Federal Minister. He will hold the portfolio of Finance, as allocated by the Prime Minister,” according to a Cabinet Division notification.

The Cabinet Division had issued the notification after Hafeez Shaikh took the oath as a federal minister in the morning. Shaikh is not an elected member of parliament but the Constitution empowers the prime minister to appoint anyone as minister for a period of six months.

However, the prime minister’s decision to withdraw the portfolio of the Revenue Division, which is the administrative division of the Federal Board of Revenue, was surprising.

Sources told The Express Tribune that Shaikh took the issue of withdrawal of the Revenue Division portfolio with the prime minister on Friday.

They said the premier reportedly said that the bureaucracy overlooked this issue and a new notification could be issued to re-designate Shaikh as finance and revenue minister.

However, the sources in the Cabinet Division said that the division issued the notification according to the instructions received from the Prime Minister’s Office.

In October, Prime Minister Imran Khan had appointed Dr Waqar Masood as his special assistant on revenue. Till Friday, Dr Masood was reporting to Dr Shaikh.

After the recent development, Dr Waqar Masood will directly report to the prime minister, as the Revenue Division portfolio now rests with Imran Khan.

In July last year, Shaikh had lodged a strong protest with the prime minister over the withdrawal of the Revenue Division portfolio. He even hinted at resigning from his position, the sources had told The Express Tribune then.

The Revenue Division is responsible for tax policy, tax administration, avoidance of double taxation agreements with other countries, legal proceedings and litigation in tax matters and administration of Customs and Excise Group and Income Tax Group, according to the Rules of Business of 1973.

The new decision to separate Revenue Division would greatly reduce Shaikh’s powers, until its reversed.

The decision to separate the Revenue Division from the finance ministry might also impact implementation on the $6 billion IMF programme the success of which hinges upon the FBR’s ability to deliver on annual tax collection targets.

Traditionally, there was always a lack of coordination among various divisions, as every Division tries to protect its own turf.

Other postings

The sources said that the prime minister has also not yet decided about bringing a permanent long-term chairman to the FBR.

Acting FBR Chairman Javed Ghani is holding the portfolio for the last six months and there are chances that he may be retained till his retirement or till next June by giving him three months extension after his retirement in April next year.

There were also chances that the prime minister may appoint Kamran Afzal as new finance secretary. The incumbent Naveed Kamran Baloch has been appointed as alternate executive director of the World Bank with effect from December 25.