Government to Replicate FBR Performance Model Across Federal Ministries

Prime Minister Shahbaz Sharif, encouraged by the Federal Board of Revenue’s (FBR) innovative performance management system for its officers, has established a high-powered committee to extend the model throughout the federal government.

The committee, which is headed by the finance minister, comprises other cabinet members, key federal secretaries, the auditor general of Pakistan, and two human resource experts from the private sector. Its mandate is to formulate a phased implementation strategy to apply the FBR’s performance assessment model across all federal ministries, divisions, departments, and civil service groups.

According to an official notification released on Tuesday, the committee is required to submit its proposals within a month. Its terms of reference are:

  1. Evaluate the performance assessment model utilized by the FBR, including its structure, methodologies, assessment standards, and outcomes.
  2. Determine the model’s suitability, adaptability, and scalability across ministries and service groups, while taking into account the diversity of roles and organizational frameworks.
  3. Pinpoint the necessary legal and administrative modifications for effective implementation.
  4. Develop uniform evaluation formats, feedback processes, and performance metrics to ensure impartiality, transparency, and accountability.
  5. Propose institutional frameworks, capacity-building measures, digital solutions, and protective measures essential for the effective and confidential execution of a comprehensive 360-degree assessment model.
  6. Create a phased implementation plan, incorporating pilot programs in specific ministries and a schedule for complete adoption.

It was previously reported that this novel system had been launched within the FBR for officers in the Customs and Inland Revenue (Income Tax) departments, superseding the long-criticized Annual Confidential Report (ACR) system.

Last week, PM Shehbaz gave the nod to the FBR’s initiative, which brought about notable changes in performance ratings. In the past, a staggering 98% of officers were graded as “outstanding” or “very good,” and 99% were deemed to have exceptional integrity. However, under the revamped model, only 40% are now classified in the highest tiers.

The updated performance framework introduces compensation based on merit. Officers will undergo evaluations every six months, and only those ranked in the upper performance brackets will be eligible for enhanced financial incentives. In contrast to previous norms, where almost all officers received high marks (outstanding) irrespective of their actual performance or reputation, the new model features a tiered evaluation system from “A” to “E,” with each category encompassing 20% of officers. Evaluations are carried out via a digitalized platform, placing emphasis on integrity and work quality.

The overhauled system is engineered to be transparent, secure, and resistant to undue influence. High-achieving officers will now receive rewards commensurate with their performance and ethical standards.