World Bank sees ‘moderate’ progress in tax reforms

The World Bank has rated two loan programmes in Pakistan, together worth about $670 million, as moderately satisfactory while flagging substantial risk, according to Dawn. The lender's public disclosure said the aims include supporting macroeconomic stability, better service delivery and lifting the tax-to-GDP ratio to 15 per cent within five years.

The $700 million PRID-MPA financing was also rated moderately satisfactory overall, and the bank assigned it a substantial risk rating; the loan became effective on June 19, 2025. Its goal is to move the tax-to-GDP ratio from 12.3 per cent in June 2025 up to 15 per cent by June 2030. High political and governance risk, along with moderate to substantial risks in several other areas, underpins the grade.

The bank noted strong progress on most disbursement-linked indicators, though it asked the government to correct delays in forming the governing council of the Pakistan Bureau of Statistics and appointing a chief statistician, a position vacant since Sept 24, 2026. A separate $70 million Connected Punjab Programme also received a moderate-to-substantial risk rating, despite the bank acknowledging strong commitment from the provincial leadership.