Tag: World Bank

  • Pakistan assures World Bank of reforming power sector

    Pakistan assures World Bank of reforming power sector

    ISLAMABAD: Pakistan on Thursday assured the World Bank of taking measures to reform the power sector in the country with special focus on reducing circular debt.

    Federal Minister for Finance and Revenue Shaukat Tarin held a meeting today with Axel van Trotsenburg, Managing Director World Bank and the Bank’s Pakistan team at the World Bank Headquarters in Washington DC.

    Dr. Asad Majeed Khan, Ambassador, Dr. Murtaza Syed, Deputy Governor SBP and Mr. Naveed Kamran Baloch, Alternate Executive Director, World Bank were also present.

    Omar Ayub Khan, Federal Minister for Economic Affairs and Mohammad Hammad Azhar, Federal Minister for Energy joined the meeting virtually from Islamabad, says a press release received here from Washington DC.

    The finance minister appreciated the Bank’s support to Pakistan over the decades and acknowledged the continuing support being extended to Pakistan.

    He highlighted the measures taken by the Government to accelerate completion of projects funded by the Bank which were in the pipeline, with special focus on agriculture, housing and construction sectors.

    The finance minister assured that the Government was also keen to reform the power sector in the country with special focus on reducing circular debt.

    The finance minister reiterated that the government is fully committed to implementing structural reforms, protecting social spending and boosting social safety nets in order to protect the vulnerable segments of the society.

    Minister for Energy Hamad Azhar shared the measures being taken by the Government to reform the power sector and rationalize power sector subsidies.

    MD Axel van Trotsenburg informed the delegation on the importance that the Bank places on cooperation with Pakistan and said that the Bank was looking forward to continuing the bilateral cooperation in the future.

    He said that the Bank was partnering with Pakistan in implementing one of the largest programme by the Bank for Pakistan and acknowledged that a lot of progress has been made on implementation of structural reforms in various sectors.

    MD Axel van Trotsenburg also conveyed gratitude and appreciation for the Government’s assistance in the timely and efficient transiting of the Bank’s staff from Kabul.

  • World Bank approves $442mn for improving access to water, sanitation services in Pakistan

    World Bank approves $442mn for improving access to water, sanitation services in Pakistan

    KARACHI: The Executive Board of the World Bank has approved a financing of $442 million to support Pakistan in improving access to water and sanitation services for the vulnerable rural communities in Punjab province, a statement on Saturday.

    It said that the Punjab Rural Sustainable Water Supply and Sanitation Project (PRSWSSP) will help upgrade water supply and sanitation infrastructure and services that ensure equitable and sustainable access to drinking water and safe wastewater management. The project prioritizes rural settlements, where water contamination and poor sanitation practices are more prevalent, causing high levels of illness and child stunting.

    “PRSWSSP will help more than six million rural residents in the poorest districts of Punjab to reduce child stunting and address areas at high risk to droughts and water scarcity,” said Najy Benhassine, World Bank Country Director for Pakistan.

    “The World Bank is committed to the government in improving sustainable water resource management. This project will support investments that increase climate resilience, including flood protection, rainwater harvesting and water conservation in these districts.”

    The project will implement tailored, cost-effective solutions for both large and small rural settlements, using scalable technologies that help facilitate solid and animal waste management at the household and community levels. It will also establish a water-quality monitoring system to ensure compliance with national standards for drinking water and wastewater.

    The PRSWSSP will promote safe water handling, hygiene, and water conservation practices at the household level, with a focus on maternal, newborn and child health.

    “The project is expected to yield substantial benefits to rural communities. It will help improve health outcomes by reducing water borne illnesses and ensure service quality and customer care through a financially sustainable public company,” said Farhan Sami, Task Team Leader for the project.

    The project will cover 16 districts, with 50 percent of districts drawn from south Punjab, and 25 percent each from central and north Punjab, benefiting 2,000 villages and more than six million people in rural areas. It will also provide training of village councils and community caretakers, which will have complementary responsibilities for operations and maintenance, monitoring and evaluation, and customer service.

    “Child stunting is endemic and a huge constraint on Pakistan’s potential,” said Ghazala Mansuri, co-Task Team Leader for the project. “It impacts a child’s cognitive development and immune system, reducing educational attainment, making illness more likely, and leading to lower productivity and income. Its effects are inter-generational, transmitted from parent to child. This project would provide the template for a transformational shift in human capital accumulation since it addresses all the determinants of stunting.”

    The project design was informed by a 2018 flagship report, When Water Becomes a Hazard: A Diagnostic Report on The State of Water Supply, Sanitation and Poverty in Pakistan and Its Impact on Child Stunting, that examined linkages in Pakistan between water and sanitation services, and child stunting.

    This study also supported environmental sustainability and the need to provide information and support behavioral change in poor rural communities to reduce health risks.

    Pakistan has been a member of the World Bank since 1950. Since then, the World Bank has provided $40 billion in assistance. The World Bank’s program in Pakistan is governed by the Country Partnership Strategy for FY2015-2020 with four priority areas of engagement: energy, private sector development, inclusion, and service delivery. The current portfolio has 57 projects and a total commitment of $13 billion.

  • World Bank approves $153 million for Pakistan COVID vaccine drive

    World Bank approves $153 million for Pakistan COVID vaccine drive

    ISLAMABAD: The World Bank’s Board on Friday approved the restructuring of the Pandemic Response Effectiveness in Pakistan (PREP) project, originally approved in April 2020, to redeploy $153 million to support the ongoing national vaccine drive in Pakistan.

    These funds, redeployed at the request of the federal government, will help finance the purchase and deployment of safe and effective COVID-19 vaccines that meet the eligibility criteria of the World Bank. The project will strengthen the health system’s capacity to implement the vaccination campaign for its prioritized and eligible populations.

    “The third wave of COVID-19 emerged in Pakistan in March 2021 and is threatening the lives and livelihoods of millions of people,” said Najy Benhassine, World Bank Country Director for Pakistan.

    “The World Bank remains a committed partner to support Pakistan in addressing this public health crisis, including through vaccination, and providing support to tackle the social and economic impacts of the pandemic.”

    In addition to this financing for vaccines in Pakistan, the World Bank has provided a total of $768.5 million to support the vaccination purchase and rollout efforts in Afghanistan, Bangladesh, Nepal and Sri Lanka.

    In addition to financing, the Bank is providing technical assistance and knowledge-sharing workshops for countries in South Asia on different aspects of designing and deploying fair and equitable vaccine strategies.

  • World Bank, FBR discuss $400 million reform program

    World Bank, FBR discuss $400 million reform program

    ISLAMABAD: The World Bank and Federal Board of Revenue (FBR) on Friday discussed reform program worth $400 million, which is aimed at automation of tax collection and simplification of tax compliance.

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  • Harmonizing general sales tax top priority: Hammad Azhar

    Harmonizing general sales tax top priority: Hammad Azhar

    ISLAMABAD: Federal Minister for Finance, Revenue, Industries and Production, Mohammad Hammad Azhar on Tuesday said that harmonization of general sales tax is priority area of the government.

    Hammad Azhar, held a virtual meeting with Hartwig Schafer, Vice President South Asia Region, World Bank Group at the Finance Division.

    The federal and provincial tax authorities are working out procedures for its smooth implementation, the finance minister added.

    He expressed firm resolve of the government in implementing reforms under ongoing World Bank projects and thanked the Vice President for their continued guidance and collaboration.

    The Finance Minister reiterated that the government is fully committed to implementing structural reforms, protecting social spending and boosting social safety nets in order to protect the vulnerable segments of the society.

    Federal Minister for Economic Affairs Division Makhdoom Khusro Bakhtiar, Federal Minister for Energy Omar Ayub Khan, SAPM on Power Tabish Gauhar, Governor State Bank of Pakistan Reza Baqir, Secretary Finance Division, Secretary Power Division, Secretary EAD, Chairman FBR and senior officials participated in the meeting.

    The finance minister appreciated the pivotal role being played by the World Bank in strengthening governance and service delivery through institutional reforms in Pakistan over the years.

    The Federal Minister for Energy and SAPM on Power outlined the steps being taken to streamline the power sector, improving service delivery and serving the larger interest of electricity consumers.

    They emphasized that the government is fully committed to make power sector dynamic and more sustainable.

    The Federal Minister for Economic Affairs Division (EAD) lauded the World Bank’s IDA financing for the Crisis-Resilient Social Protection (CRISP) and other projects on the occasion.

    The Vice President, World Bank appreciated the government’s relief initiatives to curtail the impact of COVID-19 pandemic effectively. The Vice President reiterated the World Bank’s continuous support to the Government of Pakistan during testing times.

    The World Bank also acknowledged that a lot of progress has been made on implementation of structural reforms in various sectors. There is a need to keep up the momentum once the health crisis abates, he added.

  • FBR starts harmonizing Inland Revenue codes to simplify tax laws

    FBR starts harmonizing Inland Revenue codes to simplify tax laws

    ISLAMABAD: Federal Board of Revenue (FBR) has started harmonizing Inland Revenue codes in order to simplify and consolidate the tax laws, sources said on Wednesday.

    The harmonization of IR codes has been started under World Bank funded ‘Pakistan Raises Revenue Project’.  The FBR said that it had received financing from the World Bank towards the cost of the Pakistan Raises Revenue Project, and intended to apply part of the proceeds for consulting services.

    The FBR said the government of Pakistan is implementing a reforms program to mobilize domestic revenues to finance its development vision.

    This program is being financially supported by the World Bank through a Pakistan Raises Revenue Project (PRRP). The overall objective of the Project is to “contribute to a sustainable increase in domestic revenue by broadening the tax base and facilitating compliance”. The duration of the implementation of project is five-years (2020-2024).

    The FBR, with support from the World Bank, is currently undertaking a project for harmonization of the existing tax laws administered by the Inland Revenue Service of the Board, including but not limited to the Sales Tax Act, 1990, Income Tax Ordinance, 2001, the Islamabad Capital Territory (Sales Tax on Services) Ordinance 2001, the Capital Value Tax levied under Section 7 of the Finance Act 1989 and the Federal Excise Act, 2005 with the objective to harmonize the existing laws to the extent possible in order to provide ease of compliance and implementation and to bring certainty into their application.

    Inland Revenue Service working under the FBR is responsible for administering tax laws pertaining to levy, assessment and collection of all Federal Inland Taxes.

    Over the years, a harmonization process for the three main Inland Revenue laws, i.e. Sales Tax Act, 1990, Income Tax Ordinance, 2001, the Islamabad Capital Territory (Sales Tax on Services) Ordinance 2001, the Capital Value Tax levied under Section 7 of the Finance Act 1989 and the Federal Excise Act, 2005 has continued in order to align the provisions of the four enactments with each other and to provide uniformity and ease of implementation/compliance for the tax collectors and the taxpayers.

    The next milestone in the on-going reforms and continuance of the process of streamlining of Inland Taxes is the transition to a harmonized Inland Revenue Code by integrating the existing four laws.

    Consulting services are required for drafting of the harmonized Inland Revenue Code including legislative drafting along with stakeholder consultation.

    The administrative and machinery provisions will be common for all the three tax laws. This component of the proposed Code would include provisions relating to record keeping, registration and returns, audits and investigations, tax arrears, penalties (both civil and- criminal) for a taxpayer’s failure to comply with his obligations, recovery of monies owed to the government, internal investigations, the legal rights of taxpayers (including appeals), redress processes and dispute settlement.

    On the other hand, the charging and substantive provisions will be unique for each tax in conformity with their distinguishable character and essence. In addition to reorganization of the existing legal provisions, the exercise will provide an opportunity to simplify and consolidate the tax laws where the laws have become cumbersome and complex.

    This initiative will reflect aspirations of taxpayers to have a simple tax law, provide ease of doing business, meet the demands of both bilateral and multilateral development partners, as well as vividly crystallize the government’s vision of a fresh-look tax system.

    The foregoing factors demand initiating the process of writing of a harmonized Inland Revenue Code as early as possible so that it can be publicized for general feedback and comments before becoming the part of the next Finance Bill.

    FBR seeks the services of a consulting firm, which shall lead all aspects of the assignment of drafting the new legislation.

    The Assignment has the following components:

    (a) To review existing analytical work and recommendations from government’s and development partners’ initiatives from recent past;

    (b) to engage in a structured consultative process with the management of the Board, to comprehend overall vision and objectives for this assignment, and to design a roadmap for achieving the desired objectives;

    (c) to structure the drafts in a manner that it has common administrative/machinery provisions for all tax types and separate charging/substantive provisions for each tax type;

    (d) to discuss and analyze the implications of the recommended unified tax code for the organizational structure of the FBR and IRS;

    (e) to prepare and submit the draft legislation to the Board for its review and approval;

    (f) to conduct stakeholders’ consultations, including FBR field offices, the taxpayers’ association or similar organizations, and incorporate their views, before submitting the drafts for legislative processing.

    (g) to assist the FBR in the legislative process by attending the meetings of the Parliamentary Committees, if so, required by the FBR; and

    (h) to work with FBR to design and conduct communication and awareness campaigns (internal and external), after the promulgation of the legislation.

    The FBR has invited Expression of Interest (EOI) from consulting firms by March 05, 2021.

  • SBP governor to moderate dialogue on ‘banking on equity’ hosted by World Bank

    SBP governor to moderate dialogue on ‘banking on equity’ hosted by World Bank

    KARACHI: The World bank is hosting a webinar on ‘Consultative Dialogue on the State Bank of Pakistan’s Gender Financial Inclusion Policy – Banking on Equality’ on Tuesday, February 23, 2021, a statement said on Sunday.

    During the webinar, Governor SBP, Dr. Reza Baqir will moderate a high profile international panel discussion.

    The State Bank of Pakistan (SBP) has developed a draft policy titled ‘Banking on Equity’, which aims to introduce a gender lens within the financial sector through targeted measures to bring a shift to women friendly business practices and to significantly increase women’s financial inclusion in Pakistan, a statement said on Sunday.

    This policy is currently in a public consultation phase and is expected to be launched shortly.  SBP has held several Focus Group Discussions led by Governor SBP, Dr. Reza Baqir and Deputy Governor Sima Kamil with key stakeholders including government, financial institutions, regulatory bodies, academia, business federations, gender policy experts, civil society and women entrepreneurs. 

    This Webinar will draw on global experiences of gender responsive policies to inform how these may work effectively in the context of a developing country like Pakistan.

    During the webinar, Governor SBP, Dr. Reza Baqir will moderate a high profile international panel discussion. Joining him will be Ms. Caren Grown (Global Director, Gender, World Bank), Ms. Mary Ellen Iskenderian  (President & CEO, Women’s World Banking) and Ms. ParwatiSurjaudaja (President Director, Bank OCBC NISP Indonesia).

    The panelists are renowned global experts with rich experience in women’s financial inclusion and the benefit of their insights will help conclude the consultative phase of this policy.   

    The program will include views from Hartwig Schafer (Vice President for the South Asia Region, World Bank), Alfonso Garcia Mora (Vice President for Asia and Pacific, IFC) while Deputy Governor SBP Ms. Sima Kamil will present the key pillars of the policy.

  • World Bank approves $300 million for two projects in Pakistan

    World Bank approves $300 million for two projects in Pakistan

    ISLAMABAD: The executive board of the World Bank has approved $300 million for financing two projects in Pakistan – the Sindh Resilience Project and the Solid Waste Emergency and Efficiency Project.

    These investments will bolster Pakistan’s efforts to build resilience to natural hazards such as floods and droughts in the Sindh province, and will strengthen solid waste management in Karachi to tackle recurrent urban flooding and public health emergencies in the city, the World Bank said in a statement on Wednesday.

    “Building resilience to natural disasters and health emergencies is an important and urgent agenda in Pakistan, that will help save lives and protect the economy,” said Najy Benhassine, World Bank Country Director for Pakistan.

    “The debilitating impact of recent floods in Karachi, droughts and extreme rainfall in Sindh, and of course the COVID-19 pandemic, make it imperative that risk reduction investments strengthen multi-sectoral dialogue and coordination at the city, provincial, and national levels to ensure protections for vulnerable communities and fight the spread of disease.”

    The US$200 million Sindh Resilience Project Additional Financing will help the government better manage climate and disaster risks, including floods, droughts, and public health emergencies.

    The project will strengthen linkages between disaster risk management and the health sector by establishing the Sindh Emergency Service to strengthen capacity for disaster preparedness and emergency response, including health crises such as COVID-19.

    The project also improves irrigation infrastructure to protect vulnerable communities living in rural areas, which will directly benefit 750,000 citizens in drought-prone areas of Kirthar range hills and the Nagarparkar region in the Tharparkar District.

    “The establishment of Sindh Emergency Service will greatly enhance the government’s responsiveness to natural disasters and emergencies, particularly in a megacity like Karachi where many lives are lost due to insufficient emergency medical services,” said Ahsan Tehsin, Task Team Leader for the Sindh Resilience Project.

    “The project will also improve water security for rural communities that suffer from chronic malnutrition and poverty and are forced to migrate due to water insecurity.”

    The US$100 million Solid Waste Emergency and Efficiency Project (SWEEP) will improve solid waste management services in Karachi – Pakistan’s largest city of more than 16 million people – and upgrade critical solid waste infrastructure to reduce urban flooding and public health risks.

    The project focuses on emergency waste removal to restore stormwater drainage capacity before the next monsoon season, especially in vulnerable communities around drainage and waste collection sites.

    The project will improve living conditions for at least half a million residents of Karachi and increase protections for workers by introducing safety protocols that improve labor conditions.

    SWEEP also addresses deficiencies in existing solid waste infrastructure by constructing and upgrading critical infrastructure, such as collection, transfer and disposal facilities.

    It also leverages the Competitive and Livable City of Karachi Project (approved on June 27, 2020) to advance long-term planning, policy reforms, and behavioral changes required to improve the solid waste management sector.

    “Engaging citizens and community members, including informal workers, is essential for sustainable and safer waste management solutions,” said Suhaib Rasheed, Task Team Leader for the Solid Waste Emergency and Efficiency Project. “Equally important is a focus on financial sustainability, which will require continued efforts to develop private sector partnerships and sustainable revenues streams to offset the costs of delivering these vital services.”

  • Pakistan urgently needs solar, wind energy expansion to lower power cost: WB

    Pakistan urgently needs solar, wind energy expansion to lower power cost: WB

    ISLAMABAD: The World Bank (WB) on Tuesday launched a study suggesting that Pakistan should quickly implement a major scale-up of solar and wind generation.

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