World Bank Approves Additional $70 Million Credit

The World Bank has approved an additional $70 million credit for the Pakistan Raises Revenue project, bringing the total funding to $470 million. This financing aims to enhance Pakistan’s domestic revenue collection and improve tax compliance.

Building on previous successes, the project has already helped the Federal Board of Revenue (FBR) achieve multiple milestones. They have expanded the tax base by 1.5 million new taxpayers, simplified the tax system, upgraded IT infrastructure, and established data tools for improved compliance. These efforts have led to increased tax revenues, allowing for greater allocation to social sector budgets, particularly social safety nets.

The new financing will further bolster the FBR’s capacity through strengthened IT systems, advanced data analytics to combat tax evasion, and enhanced customs operations. These improvements are expected to increase transparency and accountability within the FBR, and encouraging voluntary tax compliance. This initiative aligns with the World Bank Group’s Country Partnership Framework for Pakistan (2026-2035), with a key objective of raising the tax-to-GDP ratio to 15 percent by 2035.