Political and administrative problems, economic uncertainty, institutional weaknesses are major obstacles to program implementation.
The programs aim to promote economic stability, improve public service delivery, and increase tax collections to 15 percent.
Most of the targets associated with the release of funds, continuous progress in the implementation of the reform program are commendable, report
Washington: The World Bank has described two loan programs worth about $670 million in Pakistan related to tax reforms and digital services as moderately satisfactory, but has also identified risks to their success. According to the World Bank, political and administrative problems, economic uncertainty and institutional weaknesses are major obstacles to the effective implementation of these programs. According to a recent World Bank report, both programs aim to promote economic stability in Pakistan, improve public service delivery and increase the ratio of tax collections to 15 percent of gross domestic product (GDP). The report describes the $700 million financial assistance under the Pakistan Public Resources for Inclusive Development (PRID) Program as moderately satisfactory, but the overall risk rating for it is significant. A key goal of this program is to increase the ratio of tax collections from 12.3 percent in June 2025 to 15 percent by June 2030.
According to the World Bank, political and governance risks, economic conditions, institutional capacity, financial discipline, and environmental and social standards issues could affect program implementation. According to the report, an advance of $164.52 million was released under the program on June 29. The World Bank appreciated the significant progress made against most of the targets associated with the release of funds, describing it as a reflection of continued progress in implementing the reform program. The World Bank and the Government of Pakistan are working together to streamline technical assistance arrangements and mitigate the impact of delays in approval processes following changes in the project’s activities and cost allocation.
The report also identified delays in the formation of the Governing Council of the Pakistan Bureau of Statistics and the appointment of the Chief Statistician. According to the World Bank, the position of Chief Statistician should not remain vacant under the terms of the program and it is not acceptable to temporarily assign this responsibility to a current government official. According to the report, the position has been vacant since September 24, 2026. The World Bank has also rated the $70 million Connected Punjab Program for promoting digital services in Punjab as medium to significant risk due to political, administrative, economic and financial risks. The program is effective from the beginning of the current fiscal year and will continue until June 2031. The bank acknowledged that the program has strong support at the highest level of the Punjab government and the Punjab Information Technology Board has obtained the provincial government’s approval for it.
The primary goals of the program include increasing access to broadband and internet connectivity, improving the delivery of digital services, preparing for the use of artificial intelligence and promoting cashless transactions. According to the World Bank, the next steps of the program include establishing a committee to oversee artificial intelligence, developing a data governance framework, personal information protection and cybersecurity strategies. The World Bank’s Board of Directors approved the PRID.MPA program on December 19, 2025. The program aims to increase domestic revenue through reforms at the federal and provincial levels, improve the quality of government spending, and improve the delivery of public services through the effective use of data and digital technology.
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