Pakistan greenlights $200m ADB loan despite questions over digitalisation project
ISLAMABAD: Pakistan on Friday greenlit another $200 million (Rs57bn) loan from the Asian Development Bank (ADB) for digitalisation, despite serious questions raised by the Planning Commission. The project was one of seven projects worth Rs116bn cleared by the Central Development Working Party (CDWP) at a meeting presided over by Planning Minister Ahsan Iqbal. He conditionally cleared the Rs57bn…
The Asian Development Bank (ADB) has approved a $200 million loan for Pakistan's digitalisation initiative, known as the Transforming and Digitalising Revenue Administration (TADRA) project. This project aims to boost the tax-to-GDP ratio to 13.5% by 2029 from the current 11.1%, though it has faced criticism from the Planning Commission and other stakeholders.
The project is part of a larger $4.7 billion loan package used for tax system reforms, and the FBR has pledged that the loan will help expand the taxpayer base and increase the tax-to-GDP ratio. The project's approval requires a thorough review of past reform interventions, as well as a clear set of measurable outcomes regarding revenue generation and the tax-to-GDP ratio.
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