World Bank sees ‘moderate’ progress in Pakistan's tax reforms

According to Dawn, the World Bank has given two of its Pakistan loan programmes a moderately satisfactory rating, paired with a substantial risk level. The lender's public disclosure covers the $700 million PRID-MPA financing, which took effect on June 19, 2025, and the $70m Connected Punjab Programme, which carries a moderate-to-substantial risk rating. The programmes aim to strengthen macroeconomic stability and service delivery, and to raise the tax share of GDP to 15pc over five years.

The bank said overall risks are substantial, citing high political and governance risk, along with risks ranging from moderate to substantial in macroeconomic, institutional and other areas. Despite these concerns, it observed strong progress on most disbursement-linked indicators. Funds of $164.52 million were released in advance on June 29, and officials are now putting the technical assistance element into practice.

The bank has asked the government to correct delays tied to the Pakistan Bureau of Statistics, including the formation of its governing council and the appointment of a chief statistician, which it described as a major shortfall against programme requirements. The chief statistician seat has stood empty since Sept 24, 2026, and the bank wants the post kept filled throughout implementation.