Finance Adviser Salehuddin Ahmed on Tuesday assured that there is no reason for concern among officials of the National Board of Revenue (NBR), despite the government’s decision to dissolve the institution and replace it with two new divisions.
Speaking to reporters following a meeting of the Cabinet Committee on Government Purchase, he stated that the move is consistent with international best practices and will not negatively affect revenue collection.
The restructuring, formalised through an ordinance issued on Monday night, will divide the NBR into two separate entities under the Ministry of Finance—the Revenue Policy Division and the Revenue Management Division.
The much-discussed Revenue Policy and Revenue Management Ordinance was issued by the interim government, reportedly without considering input from BCS Income Tax and Customs cadre officials. This has led to discontent and unrest among many NBR officers.
Salehuddin Ahmed explained that the decision was made after discussions with senior NBR and administrative officials. He emphasised that many countries around the world maintain separate divisions for revenue policy and its implementation.
Those responsible for formulating policy, he added, should be professionals with a solid understanding of GDP, economics, and statistics—and should not also be in charge of collecting revenue. Separation of these functions, he said, is key to improved governance and efficiency.
He further said revenue collection would remain stable. “So far, revenue collection has increased by 2 percent compared to the same period last year. It’s not disappointing—we expect even better performance. At the very least, it will not be lower than last year,” he said.
On the subject of the upcoming budget, the adviser noted that there would not be a large deficit. “Projects and Annual Development Programme implementation will be based on practical realities. The budget will not be executed through borrowing from banks or printing money. While a moderate deficit will exist, we have already engaged with the IMF and World Bank for support, and in that regard, we have been reasonably successful,” he added.
The restructuring aims to separate tax policy-making from tax administration—addressing longstanding concerns about conflicts of interest and inefficiencies within the NBR. The government expects the reform to pave the way for more effective, transparent, and accountable revenue governance.