FBR Seeks Exemption for Critical Vacant Posts to Support Transformation Plan

The Federal Board of Revenue (FBR) has requested an exemption from the federal cabinet’s directive to abolish 60% of vacant posts, proposing to retain 1,730 positions as a one-time dispensation.

This proposal was presented on Friday during a meeting of the Cabinet Committee on Rightsizing, chaired by Finance Minister Muhammad Aurangzeb.

The Revenue Division emphasized the necessity of these positions under its transformation plan, which aims to modernize operations, including automation and technological integration. The matter has been referred to a sub-committee led by Salman Ahmad, ambassador-at-large, for further review and decision-making.

The federal cabinet’s directive from August 2024 requires departments to abolish 60% of vacant positions. Of the FBR’s 23,822 sanctioned posts, 2,883 are vacant, meaning 1,730 posts would need to be abolished. The FBR argued that these positions are critical for tackling capacity challenges, especially in areas like audit, legal, and sector-specific expertise.

The transformation plan, approved by the prime minister in September 2024, includes measures like Faceless Customs Assessment and Examination to boost efficiency. As part of the ongoing rightsizing process, the FBR has already abolished 158 posts and designated 27 others as “dying posts.”

One of the FBR’s main challenges is a shortage of auditors, with only 355 filled positions on the IRS side, compared to the required 1,900. The cabinet has approved funds to hire 1,619 auditors to address this gap.

Furthermore, the FBR plans to hire 100 sectoral experts for large tax offices and 25 technical experts for post-clearance audit functions through a third-party payroll firm.

The financial implications for hiring these experts are estimated at Rs348 million for the current fiscal year and Rs1.3 billion for the next. For the technical experts, the costs are projected at Rs33 million for the remaining fiscal year and Rs73 million for the following year.

The Rightsizing Committee has directed a detailed follow-up review to assess the FBR’s proposals and ensure they align with government objectives for efficiency and sustainable policy implementation