The World Bank Wednesday updated Adviser on Finance Dr Abdul Hafeez Shaikh on its assistance under Pakistan Raises Revenue Project being provided to harmonize the sales tax across Pakistan, raise tax-to-GDP ratio to 17 percent by 2023-2024 and widen tax net from 1.2 million to 3.5 million active taxpayers.
During a meeting of Vice President of World Bank Ceyla Pazarbasioglu with Adviser on Finance Dr Abdul Hafeez Shaikh here on Wednesday, the adviser was also updated on the progress under the US $400 million Pakistan Raises Revenue Project which aims to strengthen the Federal Board of Revenue (FBR) and create a sustainable increase in Pakistan's domestic tax revenue.
Pazarbasioglu added that the project would target raising the tax-to-GDP ratio to 17 percent by financial year 2023-2024 and widening the tax net from the current 1.2 million to at least 3.5 million active taxpayers.
The project would assist in simplifying the tax regime and strengthening tax and customs administration. It will also support the FBR with technology and digital infrastructure and technical skills. The government has set improving tax revenue with low compliance costs as a high priority, the vice president of WB added.
Pazarbasioglu appreciated the economic reforms program initiated by the government to stabilize the Pakistani economy and accelerate broad-based growth. The World Bank team also congratulated the adviser on the improvement of Pakistan in the ranking of the Ease of Doing Business (EODB).
The World Bank team discussed with the adviser the Resilient Institutions Strengthening Program (RISE). This includes an integrated debt management office in the Finance Division. The meeting also focused on areas of harmonization of tax regime, circular debt strategy and national tariff policy matters.
Dr Abdul Hafeez Shaikh said that Pakistan values the financial and technical support provided by the World Bank for the institutional reforms and economic development of the country.
During the meeting, the adviser appreciated the support being provided by the World Bank to Pakistan and highlighted the government's focus on expediting speedy rollout of the World Bank projects in the pipeline and actions being taken in this regard.
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