Federal govt clears $200 million World Bank-funded project for KP to improve tax collection, public spending

Profit by Pakistan Today reported that the federal government approved a five-year, $200 million World Bank-backed reform programme for Khyber Pakhtunkhwa, scheduled to run until October 2031. Cleared on October 23, the plan includes $180 million for implementation and $20 million for technical assistance through the World Bank’s International Development Association.

The initiative covers provincial revenue collection, public spending and statistical capacity. Proposed measures include widening the tax base, risk-based audits, revised property valuations and fewer tax exemptions, alongside better budget management and more timely operational funding for schools and primary healthcare facilities. It also aims to strengthen the KP Bureau of Statistics, with early targets including integrated monitoring of human development indicators. The programme follows earlier World Bank-supported fiscal reforms in the province, including a $118 million initiative scheduled to conclude in June 2026.