Pakistan’s efforts to speed up the resolution of tax disputes are under renewed scrutiny after the backlog of cases at the Appellate Tribunal Inland Revenue (ATIR) climbed to nearly 68,000. The increase comes despite the government’s decision to appoint 24 private-sector professionals on market-based salaries reaching as high as Rs2.6 million per month.
The appointments were made under the 2024 recruitment policy with the objective of improving the tribunal’s efficiency and reducing years of accumulated tax litigation. Along with competitive salaries, the new members were offered various benefits and privileges to attract experienced professionals capable of handling complex tax cases.
However, the expected improvement has yet to materialize. Official figures indicate that the tribunal currently disposes of around 1,000 cases every month. At this pace, it would take approximately five to six years to eliminate the current backlog—even if no additional appeals were filed during that period.
Most of the pending litigation involves Inland Revenue Service matters, accounting for nearly 60,000 cases, while another 8,000 cases are related to customs disputes. Punjab remains the most affected province, representing roughly three-quarters of the total pending cases, with Lahore handling the largest share.
In response to the growing concern, the federal government has established a four-member review committee to evaluate the performance of the recently appointed tribunal members. The panel will determine whether the appointments have achieved their intended purpose and recommend whether members should continue in office, receive extensions, or face removal due to poor performance or misconduct.
The committee consists of retired Justices Athar Saeed and Tariq Abbasi, Shad M. Khan, Chairman of the Telecommunication Appellate Tribunal and a retired Inland Revenue Service officer, and chartered accountant Ghazi Akhtar Khan. Their assessment will focus not only on the efficiency of the tribunal members but also on identifying any administrative or operational issues that may be slowing down the resolution of tax disputes.
The review follows recommendations made by a task force established by Prime Minister Shehbaz Sharif to examine case backlogs across superior courts and specialized tribunals. Its report, submitted in May, highlighted the persistent delays in tax-related litigation and called for a closer examination of the tribunal’s performance.
The findings of the committee could shape the future of Pakistan’s tax dispute resolution system. If the review concludes that structural or administrative shortcomings are limiting progress, broader reforms may be required beyond simply increasing the number of tribunal members.
As businesses and taxpayers continue to wait for timely decisions, the government’s next steps will be closely watched. A more efficient tax appeals system is essential not only for improving public confidence but also for strengthening revenue collection and creating a more predictable business environment in Pakistan.