Prime Minister Shehbaz Sharif has taken decisive actions to strengthen financial governance and ensure that his administration’s integrity in economic matters is upheld. On Thursday, PM Sharif issued multiple instructions, including the formation of a joint inquiry team to investigate rising sales tax fraud cases and a directive to ensure that deputy ministers are not bypassed in critical policy decisions.
The prime minister’s decision to create a joint inquiry team—comprising intelligence agencies and financial experts—was aimed at tackling the alarming rise in sales tax fraud. The team, which includes members from the Federal Board of Revenue’s (FBR) Intelligence & Investigation wing and other agencies, is expected to present actionable recommendations within a month. Petroleum Minister Dr. Musadiq Malik has been appointed as the convener of this inquiry committee, reflecting his strong stance against vested interests.
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In another move, the Cabinet Division issued instructions to all federal secretaries to ensure that state ministers are involved in important decisions. This directive followed complaints by Minister of State for Finance Ali Pervaiz Malik, who felt excluded from significant economic decisions.
The inquiry team’s main objectives are to examine sales tax frauds and analyze collusion between public officials and those orchestrating these fraudulent schemes. The inquiry will delve into several high-profile cases, including instances where FBR officials prevented major tax frauds, such as a Rs292 billion scheme stopped last month. In October, the FBR arrested several individuals, including CFOs involved in orchestrating complex tax evasion schemes in industries like batteries and textiles.
Additionally, the inquiry team has been tasked with reviewing the role of the Federal Tax Ombudsman (FTO) in these cases. The FTO recently alleged a massive Rs528 billion tax fraud involving iron and steel scrap sales, highlighting the scale of fraudulent activity.
These measures signal the government’s commitment to addressing the growing problem of tax evasion and strengthening the role of deputy ministers in governance. By taking swift action, PM Sharif aims to restore trust in the economic management of the country while ensuring that financial improprieties are rigorously investigated and addressed.
