Islamabad( The COW News Digital)A massive financial irregularity amounting to Rs397 billion has been uncovered due to gross mismanagement within the Federal Board of Revenue (FBR), as revealed in a recent meeting of the Public Accounts Committee’s (PAC) subcommittee. The loss stems from failure in recovering direct, indirect taxes, and customs duties.
The session, chaired by Member of the National Assembly Shahida Akhtar Ali, reviewed audit reports of FBR for the fiscal years 2010, 2011, 2013, and 2014. The committee expressed deep concern over FBR’s negligence and administrative lapses that led to the staggering financial damage to the national treasury.
According to the audit briefing, an amount of Rs6.5 billion in sales tax and Federal Excise Duty (FED) was never collected. Moreover, 10 FBR offices failed to take any action against 633 identified tax defaulters. This inaction directly contributed to the mounting revenue losses, with officials raising questions about the transparency and accountability within the tax authority.
Audit officials emphasized that under prevailing tax laws, the FBR was authorized to recover unpaid dues forcibly, even without the issuance of show-cause notices. However, due to either inefficiency or possible collusion, this legal provision was not utilized.
The committee members slammed the FBR for its systemic weaknesses and called for an immediate investigation to fix accountability. Lawmakers highlighted that repeated warnings and audit observations had been ignored, reflecting a culture of impunity within the institution.
MNA Shahida Akhtar Ali stressed the need for institutional reforms in FBR and demanded that responsibility be fixed for the financial lapses. She further stated that failure to implement audit recommendations not only affects revenue collection but also weakens public trust in governance and state institutions.
The revelations come at a time when Pakistan is under immense pressure from international financial institutions to widen its tax net and improve fiscal transparency. Such disclosures may further complicate efforts to meet budgetary targets and build confidence among global lenders.
The PAC subcommittee has directed FBR to present a comprehensive action plan in the next meeting and ensure that all defaulters are pursued through legal means. Officials have also been instructed to report any internal involvement or corruption leading to this revenue leakage.
