Steel sector urges FBR to fast-track budget reforms

The steel sector in Pakistan is grappling with challenges in implementing the Federal Board of Revenue's (FBR) budgetary measures for 2026-27, which aim to promote corporatisation, documentation, digitisation, and reduce tax evasion. In a communication to Rashid Mahmood Langrial, Chairman of the Federal Board of Revenue, the steel sector has requested swift action on the implementation of these reforms.

The industry's representatives noted that the initiatives undertaken by the FBR, especially those targeting delegation of authority and decentralisation, are commendable and have created a positive work environment.

The creation of the position of Member Strategic Transformation is seen as a proactive step by the FBR, reflecting its commitment to institutional reform. The Federal Budget 2026–27 has introduced several significant measures to encourage corporatisation, documentation, digitisation, and curtail tax evasion while broadening the tax base. While the policy direction is promising, the industry is encountering difficulties in operationalising and executing these budgetary measures.

Specifically, the steel sector highlighted the following issues requiring urgent attention:

1. Corporatisation of Associations of Persons (AOPs) into corporate entities: Despite the industry's efforts, PRAL has been slow in merging/linking old and new STRNs/NTNs, causing hindrances for businesses. A time-bound mechanism should be introduced to promptly resolve these cases.

2. Establishment of a dedicated industry facilitation mechanism: Currently, there is no effective mechanism at FBR HQs for swiftly addressing day-to-day operational issues faced by the industry. The industry proposes the creation of a single-window facilitation team at FBR HQs, headed by a senior officer and supported by competent officials, to resolve genuine operational concerns involving PRAL, Chief Commissioners, Commissioners, and other relevant bodies, with priority given to industry-related matters.

3. Replacement of the traditional DAK/post system with fast-track digital communication: A large portion of communication between FBR HQs and the offices of Chief Commissioners and Commissioners still relies on the traditional DAK/ordinary postal system. This causes unnecessary delays in decision-making and implementation. The industry has requested a transition of the entire FBR network to a fast-track digital communication system, believing that this would expedite the implementation of reforms introduced through the Federal Budget 2026–27 and turn progressive policy initiatives into tangible results.