Islamabad: The federal government on Wednesday granted permission to the Punjab government to borrow USD 304 million (PKR 50 billion) from the World Bank (WB) — with the funds expected to be utilized for the introduction of tax reforms in the province, according to a news story published on September 17.
In this regard, the Central Development Working Party (CDWP) approved a concept clearance paper for the Punjab Resource Improvement and Digital Effectiveness Programme (PRIDE). Under the programme, the government is planning on initiating tax reforms in the province, and instituting various measures to increase tax collection — including efforts to expand the tax net.
The clearance paper further stated that the proposed loan would make taxation more progressive, facilitate taxpayers, improve ease of doing business in the province, and reduce interactions between the tax payers and tax collectors.
Reportedly, the government is looking to acquire USD 30 million of the total WB funds in the form of a grant. However, the terms are yet to be finalised in this regard.
