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World Bank Extends Deadline for PRR Project

World Bank Extends Deadline for PRR Project

Islamabad: The World Bank has granted an extension for the “Pakistan Raises Revenue” (PRR) project to enhance the country’s tax system.

The bank has sent a letter to the government stating that the International Development Association (IDA) has agreed to their request. As a result, the financing agreement has been amended, and the closing date has been extended by one year to June 30, 2025.

This decision follows the Pakistani government’s request to extend the PRR project. The extension will allow for the successful implementation of its components and includes modifications to the project’s structure and objectives.

The PRR project aims to enhance Pakistan’s tax system by improving tax collection efficiency, infrastructure, and technology. So far, the project has disbursed approximately $291.31 million, which represents about 74% of the total funding. It has made significant progress in simplifying the tax system, promoting taxpayer compliance, and increasing institutional efficiency.

Key revisions under the extension involve shifting the project’s focus from the Tax-to-GDP ratio to the Federal Board of Revenue’s (FBR) total collections as a percentage of GDP. This adjustment better reflects the project’s impact on revenue collection efforts.

Additionally, changes in measurement methodologies for performance indicators, such as customs clearance efficiency, will be implemented using real-time data and case studies.

The World Bank’s approval of the extension underscores confidence in the project’s effectiveness and alignment with Pakistan’s economic reform objectives. This extension provides the necessary time to complete the Investment Project Financing (IPF) component, ensuring the project achieves its intended outcomes for Pakistan’s economy and citizens. For the latest Real Estate News and Blogs, visit Realtorspk blogs.

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