World Bank flags substantial risks to Pakistan’s $700 million tax reform programme

Profit by Pakistan Today reported that the World Bank has highlighted considerable implementation hazards in the $700 million public resources reform programme for Pakistan. The lender rated the programme's implementation as moderately satisfactory while classifying overall risk as substantial, even though most disbursement-linked targets have shown strong advancement. Named concerns include high political and governance risks, plus moderate-to-substantial exposure to macroeconomic and institutional issues.

The programme seeks to lift the tax-to-GDP ratio to 15% by June 2030, starting from 12.3% recorded in June 2025. A $164.52 million advance payment went out on June 29, while the government works to put technical assistance and implementation arrangements into effect. The lender pointed to slow progress in forming the governing body that oversees the Pakistan Bureau of Statistics. The chief statistician role has been empty since September 24, 2026, although programme terms require it to stay filled.

Separately, the World Bank gave the Connected Punjab Programme, a $70 million initiative running to June 2031, moderate-to-substantial risk marks. The programme focuses on broadband expansion, digital public services, AI readiness and cashless payments. The lender noted firm ownership by the Punjab government and also pointed to political and governance problems, plus macroeconomic and fiduciary issues. The Punjab Information Technology Board has obtained provincial approval, and further work is planned on an AI oversight committee, data governance, personal data protection and cybersecurity strategies.