ISLAMABAD: The Ministry of Finance has announced that the country will receive a $1 billion loan from the World Bank and the Asian Development Bank (ADB) to support economic and institutional reforms.
According to official documents, the World Bank will provide $600 million to improve tax collection and strengthen financial management, while the ADB will lend $400 million to help enhance the performance of public sector institutions.
The ministry stated that the loans will be used as budget support to assist with ongoing reforms in the Federal Board of Revenue (FBR), the Bureau of Statistics, the Ministry of Commerce, and the Power Division.
The government aims to raise the share of income tax in total tax revenue to 55% and improve transparency and financial discipline across public institutions.
The Concept Clearance Paper (CCP) for both loans has already been presented to the Central Development Working Party (CDWP) for approval.
