# Govt seeks $1.7b despite breaches

> Pakistan takes $1.7b World Bank loan despite two breaches of fiscal pact conditions.
- Title: Govt seeks $1.7b despite breaches · The Express Tribune
- Summary: Pakistan takes $1.7b World Bank loan despite two breaches of fiscal pact conditions.
- Keywords: pakistan, world bank, fiscal pact, tax base, constitutional alignment, government breaches, loan tranche, economic policy, The Express Tribune
- Source: The Express Tribune — https://tribune.com.pk/story/2639486/govt-seeks-17b-despite-breaches
- Author: Shahbaz Rana
- Published: 2026-11-09T21:16:41+00:00
- Read time: 1 min
- Topics: pakistan, world bank, fiscal pact, tax base, constitutional alignment, government breaches, loan tranche, economic policy, news
## 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.
## Key takeaway

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.