The World Bank has judged Pakistan's tax reform programme as moderately satisfactory yet highlighted significant implementation risks, including political and governance issues, as the nation targets a tax-to-GDP ratio of 15 percent by June 2030.
The Washington-based lender evaluated its Pakistan Public Resources for Inclusive Development programme, part of a financing package of about $700 million, and gave it an overall moderate-satisfactory rating.
The initiative is designed to bolster economic stability, enhance public service delivery and strengthen domestic revenue collection.
Pakistan plans to raise its tax-to-GDP ratio from 12.3 percent in June 2025 to 15 percent by June 2030. The World Bank assigned the programme a substantial risk rating, pointing to political and governance concerns as well as risks linked to the economy, institutional capacity, financial management, sector policies, and environmental and social standards.
The bank noted strong progress on most disbursement-linked indicators, indicating continued momentum in the reform effort.
The government is also moving to operationalise technical assistance and implementation arrangements after revising project activities and cost allocations.
Nevertheless, the lender flagged delays in appointing the chief statistician and forming the governing council of the Pakistan Bureau of Statistics. The chief statistician role has stayed vacant since September 24 2026, despite a programme requirement that it be filled throughout implementation.
Both the government and the World Bank are working to resolve these delays and lessen their effect on programme conditions and reform execution.
In a separate assessment, the bank gave the $70 million Connected Punjab Programme a moderate-to-substantial risk rating. Running through June 2031, the scheme seeks to broaden broadband access, improve digital public services and AI readiness, and boost cashless transactions.
The World Bank noted strong provincial support for the Punjab programme. The Punjab Information Technology Board has secured provincial approval, and next steps involve advancing an AI Oversight Committee, a data governance framework, a personal data protection strategy and a cybersecurity strategy.
The $700 million Pakistan Public Resources for Inclusive Development programme received board approval on December 19 2025. It backs federal and provincial reforms aimed at mobilising domestic revenue, improving public spending and using data and digital tools to strengthen service delivery.
