Islamabad, October 3, 2024 – In a significant move to enhance Pakistan’s tax collection framework and facilitate economic growth, World Bank (WB) Country Director Najy Benhassine met with Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial on Thursday to discuss the FBR’s Transformation Plan. The meeting focused on strategies to maximize revenue growth and align efforts under the ongoing Pakistan Raises Revenue Project.
Najy Benhassine was joined by a delegation that included Tobias Akhtar Haque, Lead Country Economist, Ms. Lucy Pan, Senior Economist, and Ms. Irum Touqeer, Public Sector Specialist. The high-level discussion was aimed at deepening cooperation between the World Bank and FBR, especially in the realm of tax reforms and digitalization of the tax system.
Chairman Langrial provided an extensive overview of the FBR Transformation Plan, a reform initiative backed by the Prime Minister, which seeks to modernize the country’s tax system. He outlined the government’s vision for transforming the FBR into a more efficient and transparent institution, with a focus on sustainable revenue generation while making compliance easier for taxpayers. The chairman emphasized that the core objective of these reforms is to boost revenue growth without overburdening taxpayers.
The Transformation Plan, as explained by the FBR Chairman, encompasses several key areas. These include tax policy reforms, digitalization of the tax collection process, capacity-building initiatives for human resources, anti-smuggling measures, and broad-based reforms in tax administration. These efforts are designed to improve tax compliance and close the gaps that currently exist in the system.
One of the significant elements of the Transformation Plan is the use of digital tools to enhance transparency and simplify tax procedures. This will allow businesses and individuals to comply with tax requirements more efficiently, reducing bureaucratic hurdles. The plan also includes measures to improve the capacity of the FBR staff, ensuring they have the necessary skills and resources to handle the complexities of modern tax administration.
The World Bank’s Country Director, Najy Benhassine, praised the FBR’s reform agenda, expressing strong support for the initiatives outlined. He reaffirmed the World Bank’s commitment to assist Pakistan in its efforts to improve revenue mobilization and create a more robust, fair, and efficient tax system.
“We are committed to supporting Pakistan in this critical reform journey, which is key to achieving sustainable economic growth,” Benhassine stated, reiterating the World Bank’s role in aiding the country’s tax reforms and development projects.
The meeting marks another milestone in the ongoing collaboration between the FBR and the World Bank, as both institutions work together to create a more prosperous and economically stable Pakistan.