PTBP Web Desk

The Economic Coordination Committee (ECC) of the Cabinet, under the chairmanship of Finance and Revenue Minister Senator Muhammad Aurangzeb, approved a comprehensive restructuring plan for Pakistan Revenue Automation Limited (PRAL) during its latest meeting. The decision includes a supplementary grant of Rs3.7 billion for FY 2024-25 to streamline operations and improve the financial and operational framework of PRAL.

The restructuring aims to enhance PRAL’s operational efficiency, particularly in its role as a critical facilitator for revenue collection and automation under the Federal Board of Revenue (FBR). The approved measures include:

Revised Financial Flow Mechanism:
The ECC outlined a new financial framework to improve transparency and efficiency. This includes the opening of selected cost centers and reallocation of current funding in consultation with the Secretary of Finance.

Budgeting Improvements:
Enhanced budgeting mechanisms have been introduced to ensure the timely allocation of funds and smoother project execution.

Supplementary Grant Allocation:
Rs3.7 billion was sanctioned as a technical supplementary grant for FY 2024-25 to support PRAL’s operational requirements and strategic reforms.

PRAL plays a pivotal role in modernizing Pakistan’s tax collection and revenue systems through the development and implementation of automated solutions. Its restructuring is expected to bolster its capabilities in:

Facilitating seamless tax collection.

Supporting the FBR’s digital transformation initiatives.

Enhancing transparency and accountability in revenue operations.

In addition to PRAL’s restructuring, the ECC made significant decisions across various sectors, including:

Urea Subsidy:
Approval of Rs10 billion to settle outstanding dues for imported urea subsidies, aimed at supporting agricultural productivity.

Infrastructure and Digital Economy:
Allocations for the Digital Economy Enhancement Project (DEEP) and solarization of agricultural tubewells.

Energy and Mineral Development:
Approval of projects like the Riali-II Hydropower Project and the Siah Dik Copper Project in Balochistan.

These measures collectively signify the government’s focus on revitalizing critical sectors of the economy.

The restructuring of PRAL is a strategic step toward reinforcing Pakistan’s revenue generation capabilities. By addressing operational inefficiencies and ensuring robust financial mechanisms, the ECC’s decision underscores its commitment to fostering economic stability and modernizing public sector operations.