Shehbaz Sharif Appoints First-Ever DG for Pakistan’s Tax Policy Office Major step to separate tax policy from FBR, aligning with IMF reforms

ISLAMABAD — Prime Minister Shehbaz Sharif has officially appointed Dr. Najeeb Ahmed Memon as the first Director General of the Tax Policy Office (TPO), a newly established body aimed at reforming Pakistan’s tax policy framework. The two-year appointment marks a significant shift in the government’s approach to fiscal management by separating tax policy from revenue collection functions.

A Step Toward IMF-Backed Structural Reform

As part of Pakistan’s ongoing commitments to the International Monetary Fund (IMF), the TPO has been placed under the Finance Division, effectively removing the Federal Board of Revenue (FBR) from the tax policy-making process. This restructuring ensures that the Finance Division—through the TPO—will now lead the preparation of the 2026–27 federal budget and future fiscal strategies.

Although the office was officially approved in February 2025, it has only now become operational following the appointment of its first head.

Experienced Leadership for a Modern Tax Framework

Dr. Memon brings over 20 years of expertise in tax administration, fiscal policy design, and economic research. His background includes extensive work on income tax, VAT, and federal excise systems, both domestically and internationally. He has collaborated with global organizations such as the World Bank, GIZ, HM Revenue & Customs (UK), and Tax Inspectors Without Borders, contributing to tax reform and modernization efforts.

Mandate and Objectives of the Tax Policy Office

According to the government’s notification, the TPO’s core responsibilities include:

• Conducting data-driven analysis of tax proposals

• Performing revenue forecasting and economic modelling

• Reviewing international tax treaties and obligations

• Reporting directly to the Finance Minister on fiscal and tax policy matters

Staffing decisions will be made with the consent of both the Establishment and Finance Divisions, ensuring transparency and oversight.

The federal cabinet has also reserved the right to revise the TPO’s structure and mandate as needed to enhance its performance and long-term impact.

A New Era for Pakistan’s Tax Policy

This development marks a turning point in Pakistan’s fiscal governance, signaling the government’s commitment to evidence-based policymaking, institutional transparency, and economic reform aligned with international best practices.