The federal government, under the leadership of Prime Minister Shehbaz Sharif, appears to have quietly abandoned its commitment to public transparency by withholding the annual tax directory of parliamentarians. This move, according to sources, raises significant concerns about accountability and the government’s true dedication to fiscal openness.
For a period between 2014 and 2019, the Federal Board of Revenue (FBR) consistently published two annual tax directories: one detailing the income tax paid by lawmakers, and another for all tax filers across Pakistan.1 This initiative was a direct response to a concerning revelation that many elected representatives either lacked a National Tax Number (NTN) or had failed to file tax returns. The then-government had mandated the FBR to register NTNs for all lawmakers and warned of exclusion from the directory for non-compliance.
However, officials have now confirmed that no such directories have been released to the public since January 2022. This means that tax details for fiscal years 2020 onwards, covering the tenure of the current government, remain undisclosed.
“The FBR can publish the directory within one to two days once we receive a formal directive from the federal government,” sources within the FBR revealed, indicating that the delay lies squarely with the executive’s directive.
A Step Back from Global Norms
The original initiative in 2014 was lauded as a significant step towards improving tax compliance, building public trust, and holding elected officials accountable, aligning Pakistan with a growing number of nations that publicly disclose tax data.
Globally, such transparency is far from unusual. In Finland, November 1st is informally known as “National Envy Day” due to the nationwide publication of tax information. Norway has maintained public tax returns since 1863, originally posting them on town hall walls. Sweden even allows individuals to obtain another person’s income details with a simple phone call, reflecting a cultural emphasis on openness and discouraging the concealment of wealth.
Under Section 216 of the Income Tax Ordinance, 2001, the FBR requires formal approval from the federal government to publish a comprehensive tax directory. Without this crucial authorization, even prepared directories are kept confidential, inaccessible to the public.
The tax directory initiative, once seen as a cornerstone of accountability, now languishes in obscurity. In a political climate increasingly marked by public distrust, the continued withholding of parliamentarians’ tax data risks further eroding confidence in the democratic process and the government’s stated commitment to good governance.
