World Bank has expressed its dissatisfaction over the pace of progress on revenue reforms in Pakistan, attributing it to resistance from ‘vested interest’ and ‘lack of political will.’

According to a report of the World Bank Review Mission submitted to the Federal Board of Revenue (FBR) the World Bank has advised the government of Pakistan to bypass the parliament and implement taxation reforms through a presidential ordinance. The report suggests that going to the parliament could result in ‘undesired consequences’.

The report said:

The government of Pakistan has some options to follow in order to modify the set of legal instruments that will harmonise procedures and responsibilities and allow the integration of functions irrespective of tax types. One option is to again submit the ordinance for the president’s signature on the next recess of parliament.

This is a relatively fast journey in the administrative (executive) branch that within four months will require parliament’s ratification.

The report further said:

Second option may be to send the package of legal reforms to parliament or include them as part of the budget submission for the next fiscal year. This will significantly delay the implementation of the harmonise procedure, but more importantly may be subject to changes in parliament that might bring undesired consequences.

According to Pakistani official sources, the government of Pakistan is working on the draft of an ordinance, ‘Harmonisation of Income Tax, Sales Tax and Federal Excise Duty Ordinance’.

One can wonder here that can World Bank give the similar kind of advice to any other democratic country that Parliment should be bypassed to make new laws. On the other hand Government of Pakistan aslo seems keen to act according to the World Bank advice. I can only wish that Government of Pakistan will take the route of Parliment and not bypass it.