Prime Minister Shehbaz Sharif has ordered stern action against FBR officials, including its former chairman, allegedly involved in the installation of an ‘ineffective’ track and trace system (TTS) in various industries. This system is reported to have caused losses amounting to billions of rupees through tax evasion and smuggling.
The decision to proceed against tax officials was made following an inquiry report submitted to the prime minister during a meeting about the FBR. The report, prepared by a five-member committee headed by former finance secretary Tariq Bajwa, highlighted the involvement of officials in the implementation of the ineffective TTS.
According to a press release, the FBR chairman at the time when the TTS was introduced was also held responsible for poor administrative supervision. Dr. Muhammad Ashfaq Ahmed was serving as the FBR chief when the track and trace system was installed to monitor production in cigarette, fertilizers, sugar, and cement industries. The system aimed to identify counterfeit products and curb smuggling.
Prime Minister Shehbaz Sharif expressed concern over the ‘faulty’ planning and negligence in the enforcement of the TTS, stating that it had a negative impact on the economy. He questioned the neglect of important provisions regarding the enforcement of the significant national project.
The inquiry report found the project director and the member operations inland guilty of neglect. It also placed primary responsibility on subsequent officials working in those positions.
In a separate cabinet meeting, Prime Minister Shehbaz Sharif discussed potential Saudi investments, stating that the visit of Saudi investors to Islamabad marked a significant development in ties between Islamabad and Riyadh.
The cabinet meeting also granted permission for Air Sial to start flight operations to China, Malaysia, Sri Lanka, Thailand, Turkey, the UK, and Kuwait under the National Aviation Policy 2023 and Air Services Agreement. Additionally, an MoU for the formation of a joint trade committee between Pakistan and Cambodia was approved.
The meeting endorsed the transfer of the Directorate General of Special Education from the Ministry of Human Rights to the Ministry of Education. It also supported the decisions of the cabinet committee regarding Chinese investment projects taken on April 30, 2024.
Prime Minister Sharif was briefed during a separate meeting that Japanese companies have begun preparations to produce hybrid cars locally. In a meeting with a delegation of Japanese companies and business figures in Pakistan, led by Japanese Ambassador Wada Mitsuhiro, the prime minister stated that a committee had been formed to address issues facing Japanese firms to promote their business activities in the country.
The delegation members expressed confidence in the government’s pro-business policies and measures to promote investment. The Japanese ambassador informed the PM about the upcoming visit of a 20-member delegation from Japanese firms, which is expected to enhance trade between the two countries.
