| Islamabad: The Pakistan Government has submitted a request to the World Bank (WB) for a one-year extension in the “Pakistan Raises Revenue (PRR)” project, valued at USD 400 million, as reported by a source on February 6.
Read: Dasu Hydropower Plant: Pak seeks extension in WB’s loan deadline
Under the details, this extension aims to revise specific project development objective (PDO) indicators to improve attribution and to remove measurements that are no longer applicable.
As per the restructuring paper from the Ministry of Economic Affairs, the proposed actions include:
Extending the project duration by one year until June 30, 2025, to ensure sufficient time for the completion of the Investment Project Financing (IPF) component.
Revising selected PDO indicators to enhance attribution and eliminate outdated measurements.
Adjusting selected Disbursement Linked Indicators (DLIs) and Implementation-Related Indicators (IRIs) to accommodate the extended project timeline.
Modifying select DLIs and verification protocols to account for unforeseen developments not considered during the project’s initial design.
Specifically, changes to PDO indicators involve
Shifting from the Tax to GDP ratio (Percentage) to increasing the Federal Board of Revenue’s (FBR) total collections as a percentage of GDP, aiming to elevate FBR’s total collections from 8.5% of GDP in FY-2023 to 8.8% in FY-2025. This adjustment aims to improve attribution and better reflect the implementing agency’s efforts.
Revising the measurement of the time taken to prepare, file, and pay/withhold Corporate Income Tax (CIT) and General Sales Tax (GST), which was previously assessed using the ‘Paying Taxes Indicator’ in the Doing Business report. |
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