The World Bank has assessed the implementation progress of the Pakistan Raises Revenue project, valued at $400 million, as moderately satisfactory. Official documents from the Bank indicate that $277.61 million, equivalent to 71% of the financing, has been disbursed, with an undisbursed amount of $114.39 million.
The Bank reports overall satisfactory progress in achieving the project development objectives and implementing the results-based component. Several Disbursement Linked Indicators (DLIs) showcase improved performance:
- Withholding tax lines reduced from 58 in FY19 to 33 in FY22 (DLI 1).
- Publication of detailed tax expenditure and evidence-based revenue forecast reports in FY23, along with a tax gap analysis report last year (DLI 2).
- All four provinces signing MOUs for data sharing with the Federal Board of Revenue (FBR) under DLI 3.
- Addition of around 616 thousand new taxpayers through automated data sharing, ICT-based tools, surveys, and enforcement methods (DLI 5).
- Completion of 53 field audits of large taxpayers in FY23 through risk-based selection tools and Audit Management Information System (DLI 6).
- Planned piloting of the single returns portal with the Punjab Revenue Authority (PRA) in 2023 (DLI 7).
- Reduction in the frequency of physical inspections at the border for customs processing, from 60% in FY19 to 33.42% in FY23 (DLI 8).
- Exceeding the target by completing the review, redesign, or simplification, and automation of 5 additional business processes of tax administration in FY23 (cumulatively, 17 against the target of 15 business processes) (DLI 9).
- Continuous tracking of Key Performance Indicators, with the publication of the bi-annual results report for FY23 and the annual report underway (DLI 10).
The progress of component 2 is deemed moderately satisfactory, with key procurements in process, including site preparation for data center and equipment for Automated Entry Exit Systems (AEES) at airports. The procurement process for AEES equipment for airports is underway, and preparations for seaport equipment procurement are set to begin soon.
Consultant hiring is in progress for the Central Risk Management System and Post Clearance Audit through comprehensive Business Process Mapping and Reengineering. Specifications for major procurements related to data center or data warehouse upgrades are also being designed, informing the procurement process.
