Islamabad, November 26, 2024 – Pakistan and the World Bank held discussions on Tuesday to develop a robust and transparent tax policy framework aimed at boosting revenue mobilization, improving compliance, and ensuring equitable taxation.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met with Najy Benhassine, the World Bank’s Country Director, and his team at the Finance Division. The meeting was also attended by the Finance Secretary and senior officials of the Finance Division.
During the discussions, the Finance Minister underscored the significance of collaborating with the World Bank to advance Pakistan’s economic reforms and developmental goals. He expressed appreciation for the World Bank’s financial and technical support across various sectors and reiterated the government’s commitment to fiscal discipline, sustainable growth, and efficient resource management.
The dialogue emphasized the need for a transparent tax policy framework to enhance revenue collection, improve compliance, and ensure fair taxation. The World Bank team also offered technical assistance to modernize Pakistan’s budget-making process, improve transparency and accountability in public financial management, and establish an effective debt management mechanism for fiscal sustainability and risk mitigation.
Key issues discussed included the Agricultural Income Tax Regime, harmonization of General Sales Tax (GST) in coordination with provinces, and strengthening the role of the National Tax Council. Both sides also agreed on the importance of leveraging technology and digitalization to enhance tax collection systems, reduce leakages in public revenue streams, and improve data-driven policy decisions to foster economic inclusivity.
Najy Benhassine commended the government’s reform initiatives and assured continued support from the World Bank in addressing critical economic challenges. He reiterated the World Bank’s commitment to aiding Pakistan in achieving its developmental objectives.
The Finance Minister thanked the World Bank for its unwavering support and reaffirmed the government’s resolve to implement reforms aimed at fostering sustainable economic growth and ensuring long-term fiscal stability.