ISLAMABAD: World Bank has approved a package of US$ 518 million for Pakistan as loan, a notification issued on Friday stated.
According to the notification, the loan has been approved for two projects that aim to increase tax collection by easing the taxation system.
It stated that one of the two projects of $400 million will assist Federal Board of Revenue (FBR) in enhancing revenue collection.
The loan will help improve the abilities of tax and customs administration through technology and artistic expertise.
Moreover, FBR will be able to adapt digitalization for keeping an eye on details of taxpayers which will help in more tax payments.
“Total GDP ratio of taxes in Pakistan will be brought to 17 per cent in the next five years. Quantity of taxpayer in the country will be increased from 1.2 million to 3.5 million. Tax collection projects will commence in Khyber Pakhtunkhwa province through the second loan of $118 million”, the notification stated.
According to sources within Finance Ministry, agreement on loan with IMF paved way for gaining World Bank’s confidence for the loan.
Sources also claimed that Asia Bank will also announce more loans to the country for tax-related projects in the near future.
