This paper examines issues related to employee engagement in ongoing reforms in Inland Revenues Services (IRS) of Government of Pakistan. The study is important in the backdrop of current reforms regime in the largest tax collection agency of the country where employees generally feel not to have due participation in the process. A qualitative approach is adopted, and 112 employees of officer and non-officer grades are interviews in all major tax offices. The interviews data is analysed using thematic analysis. The study reports minimal employee engagement in IRS, and employees are generally disengaged and demoralized. They fear for the loss of their ‘civil servant’ status amid reforms. The psychological conditions necessary for employee engagement are nonexistent and there is a serious lack of trust between employees and top management. It is recommended to promote engagement culture at all levels of hierarch in IRS with performance focused incentives in place.