World Bank proposes USD200m to boost KP tax bases
ISLAMABAD: The World Bank has proposed USD 200 million in financing to help Khyber Pakhtunkhwa (KP) broaden its tax base and improve public service delivery, targeting an increase in the province’s own-source tax revenue from Rs64 billion to Rs122 billion in real terms by June 2031. According to the bank’s document, the proposed Pakistan Public Resources for Inclusive Development Multiphase…
The World Bank has proposed a $200 million financing deal to assist Khyber Pakhtunkhwa (KP) in expanding its tax base and enhancing public service delivery. This funding is part of the Pakistan Public Resources for Inclusive Development Multiphase Programmatic Approach for KP and is expected to increase the province's own-source tax revenue from Rs64 billion to Rs122 billion by June 2031.
The program, running from fiscal year 2027 to fiscal year 2032, will be funded by a $100 million International Development Association (IDA) credit and a $100 million IDA loan from the World Bank, with the provincial government contributing the remaining $450 million. The initiative aims to boost KP's fiscal system to support macroeconomic stability and improve public services, with a focus on revenue mobilisation, expenditure efficiency, and data-driven policymaking.
The program will tackle three main areas: expanding provincial revenue collection, improving health and education spending, and strengthening the provincial statistical system. Major obstacles include gaps in tax coverage, fragmented revenue administration, and inadequate digital capacity. By June 2031, the program aims to ensure that 60% of primary schools meet minimum functional standards and to reduce procurement cycle times in health and primary education by 15%.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
