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The Federal Board of Revenue (FBR) has obtained the necessary clearance from intelligence to proceed with the transfer and posting of its senior officers.

The Directorate of Intelligence and Investigation (I&I) Inland Revenue (IR) has provided input on the transfer and posting of Inland Revenue Service (IRS) officers. This clearance raises questions about a similar exercise conducted in March, suggesting potential deficiencies in the previous process.

In March, under the directive of Prime Minister Shehbaz Sharif, intelligence agencies were tasked with categorizing senior FBR officers into A, B, C, and D categories based on their financial integrity and professional competence. As a result, around four dozen officers of BS-21 from both Inland and Customs services were placed in the administrative pool. Notably, one officer, who had been awarded the Tamgha-e-Imtiaz in March, was included in this group just a month later.

In July, the government added nearly two dozen more BS-20 FBR officers to the admin pool. Despite the passage of almost six months, these officers have yet to receive any formal charges. Sources indicate that human resource management has consistently been a priority in FBR reforms over the decades.

A similar integrity scrutiny exercise was conducted in 2000, when approximately 1,000 FBR officials were suspended and charged with corruption allegations under President Pervez Musharraf’s government. However, they were later reinstated by the superior judiciary. In 2007, another integrity review was conducted, leading to reforms and a special pay package for FBR officers.

The current exercise, which began in March, has resulted in junior officers being appointed as heads of field formations due to a limited number of officers meeting the professional and integrity criteria. The Appellate Tribunal Inland Revenue is also experiencing delays due to a shortage of members, despite an agreement with the Law Division to recommend a panel of officers.

Recent placements by the FBR Chairman remain under scrutiny, contributing to despondency within the organization. This has coincided with a record shortfall of over Rs. 350 billion in the first five months of FY25.

The March 2024 exercise raises questions for the government regarding the criteria used by intelligence agencies to assess the integrity of FBR personnel and why similar evaluations are not conducted in other service groups. As the FBR continues to navigate these challenges, the effectiveness of its integrity measures remains a critical issue.

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