From The Express Tribune · Shahbaz Rana · · 1m 20s
Govt seeks $1.7b despite breaches
Pakistan takes $1.7b World Bank loan despite two breaches of fiscal pact conditions.
In brief
Pakistan takes $1.7b World Bank loan despite two breaches of fiscal pact conditions. Pakistan draws full $1.7 billion World Bank loan to widen tax base and align spending with Constitution despite breaching two conditions of the fiscal pact. Originally reported by The Express Tribune.
World Bank loan approval
Pakistan plans to draw full $1.7 billion multi-tranche World Bank loan to widen tax base and align expenditure with Constitution.
Breaches of fiscal pact
Government breached National Tariff Policy twice: June tax hike and recent customs duty approval for tyre manufacturer.
First phase loan
Federal government took $600 million from $700 million first phase loan approved last year.
World Bank ratings
World Bank rated $600 million tranche 'moderately satisfactory' twice despite government breaches.
Next tranche approval
Next $200 million tranche approved for Khyber-Pakhtunkhwa government.
Fiscal pact objectives
World Bank aims to rebalance federal-provincial fiscal arrangements through tax reforms and reduced federal spending.
Tax policy improvements
World Bank supports digital land records, agricultural tax systems and property tax reforms.
Expenditure reforms
World Bank funds electricity subsidy reforms and e-procurement system to improve government spending.
Data ecosystem
World Bank establishes National Data and Statistics Hub for federal-provincial data sharing.
The short version
Pakistan draws full $1.7 billion World Bank loan to widen tax base and align spending with Constitution despite breaching two conditions of the fiscal pact.
