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Pakistan Seeks World Bank Extension for PRR Project

Pakistan Seeks World Bank Extension for PRR Project

Islamabad: The Pakistani government has formally requested a one-year extension from the World Bank for the “Pakistan Raises Revenue (PRR)” project worth USD 400 million.

This extension aims to refine specific indicators of project development objectives (PDOs) to improve attribution accuracy and discard outdated measurements.

As outlined in the restructuring paper from the Ministry of Economic Affairs, the proposed measures include extending the project duration until June 30, 2025, to ensure adequate time to complete the Investment Project Financing (IPF) component.

Additionally, selected PDO indicators will be revised to enhance attribution, while adjustments to Disbursement Indicators (DLIs) and Implementation-Related Indicators (IRIs) will accommodate the extended timeline.

Furthermore, modifications to select DLIs and verification protocols will factor in unforeseen developments not initially considered during the project’s design phase. Notably, changes to PDO indicators will involve shifting focus from the tax GDP ratio to increasing the Federal Board of Revenue’s (FBR) total collections as a percentage of GDP. This adjustment aims to elevate FBR’s total collections from 8.5% of GDP in FY-2023 to 8.8% in FY-2025, more accurately reflecting the implementing agency’s efforts.

Moreover, the measurement of the time taken to prepare, file, and pay/withhold Corporate Income Tax (CIT) and General Sales Tax (GST) will be revised. Previously assessed using the ‘Paying Taxes Indicator’ in the Doing Business report, alternative metrics will be employed as the Doing Business (DB) Report is no longer published by the World Bank.

These proposed revisions aim to enhance the effectiveness and relevance of the “Pakistan Raises Revenue (PRR)” project, ensuring alignment with current objectives and circumstances. For the latest Real Estate News and Blogs, visit Realtorspk blogs.

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