Finance Adviser Dr. Salehuddin Ahmed on Tuesday assured that the dissolution of the National Board of Revenue (NBR) and the formation of two new revenue divisions should not be a cause for concern among officials or stakeholders.
Speaking to reporters following a meeting of the Advisory Council Committee on Government Purchase, Ahmed emphasized that the restructuring aligns with international best practices and will not disrupt revenue collection.
On Monday night, the government issued an ordinance titled the Revenue Policy and Revenue Administration Ordinance 2025, dissolving the 53-year-old NBR and replacing it with two separate bodies: the Revenue Policy Division and the Revenue Administration Division.
The reform follows a key recommendation from the International Monetary Fund (IMF) aimed at improving revenue governance.
The announcement, however, sparked unease among some officials, particularly from the BCS Income Tax and Customs cadres, who claim their input was not considered in the reform process.
Addressing these concerns, Dr. Ahmed said the changes were made after consultations with senior NBR officials and relevant government authorities.
“Globally, tax policy and tax administration are handled by separate bodies. Policy formulation requires expertise in economics, GDP, and statistics. It is neither practical nor effective for the same group to create and implement policy,” he explained.
He also sought to allay fears about any negative impact on fiscal performance. “Revenue collection this year has been 2 percent higher compared to the same period last year. That’s not disappointing at all—we expect even better results in the coming months,” he said. “At the very least, collection will not fall below last year’s levels.”
Regarding the upcoming national budget, Ahmed said there would be no major deficit. “We are planning the Annual Development Programme (ADP) based on realistic assumptions. Project implementation will follow the same approach,” he added.
He further confirmed that the budget would not rely on excessive bank borrowing or printing money. “We have held positive discussions with the IMF and World Bank to address any financing gaps,” he noted.
The Finance Adviser’s remarks appear aimed at easing tensions within the bureaucracy and reassuring the public and international partners about the continuity and professionalism of the country’s revenue system following the major structural shift.