Ever-changing economic team

The PTI government continues its record-setting rotation at the helm of the FBR, bringing in its seventh chairman since taking over in August 2018. The quickfire sackings of FBR chiefs mean that the government is also running out of in-house options — new chief Dr Mohammad Ashfaq Ahmad is a Grade-21 officer. This sacking, however, reportedly ties into the recent hacking fiasco at the FBR rather than failure to implement tax policies or other issues generally associated with the job. Finance Minister Shaukat Tarin was reportedly furious at former chairman Asim Ahmad and others for their failure to inform him of the hack in a timely manner.

Considering that intelligence agencies had reportedly forewarned of such an attack, it is outrageous that the taxmen were unprepared and then focused more on covering up the extent of the attack instead of addressing it. In fact, some reports suggest that the hack took place due to the FBR’s use of pirated software, which is quite literally criminal. Almost two weeks after the attack, it appears the FBR is still finding its footing, while we, the public, still don’t know how much of our data was compromised.

Also sacked is Dr Waqar Masood Khan, the adviser to the prime minister on finance. Tarin apparently had several differences with Dr Waqar and it appears that government bodies under Tarin’s control are being purged of people believed to be in Dr Waqar’s camp. Asim Ahmad was considered close to Dr Waqar, as is Finance Secretary Yousaf Khan, whose days are reportedly numbered. That said, when Dr Waqar was appointed, he was tasked with broadening the tax base and increasing tax collection. Neither of those goals has been achieved, so it may be fair to say that Tarin had cause to push for Dr Waqar’s eventual resignation.

While it remains to be seen how many more heads roll in the FBR and elsewhere, there are some positives. New FBR chief Dr Ashfaq had a relatively impressive term as member Inland Revenue — exceeding expectations on collection in the previous fiscal year. He seems well qualified for his new job, but recent history suggests he may struggle to hold it for long enough to be effective.

Published in The Express Tribune, August 27^th, 2021.

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