Pakistan is receiving support from top tax experts, financed by the World Bank, to review and evaluate proposals for the upcoming fiscal year 2025-26 budget.
This initiative is part of broader reforms aimed at strengthening the country’s tax policy and administration systems ahead of the next budget cycle.
According to official documents, the Ministry of Finance established the Tax Policy Office (TPO) in September 2024, marking a significant milestone in the country’s evolving tax reform agenda. The TPO was created to enhance analytical capacity and provide a dedicated structure for tax policy formulation, especially during critical phases like budget preparation. The World Bank has played a key role in supporting this transition by funding seven highly qualified experts who are now actively assisting in the evaluation of tax measures and revenue strategies for the FY26 budget.
These World Bank-financed experts are not only helping to assess new tax proposals but are also contributing to the development of long-term strategies aimed at expanding Pakistan’s revenue base. Their work is expected to improve the quality and impact of fiscal decisions reflected in the final budget document.
In addition, the Ministry of Finance is finalizing arrangements for data-sharing between the TPO and the Federal Board of Revenue (FBR). This is intended to ensure smooth coordination and better utilization of data for budget formulation and forecasting. Recognizing potential overlaps, the government also plans to establish a collaboration framework between the TPO and the FBR’s International Centre of Tax Excellence (ICTE), to avoid duplication and promote synergy between the two entities.
Moreover, with technical assistance from the International Monetary Fund (IMF), the ministry will formulate short- and medium-term work plans for the TPO by the end of July 2025. These plans will outline staffing needs, engagement strategies with stakeholders, and the operational setup for the TPO Advisory Board.
These reforms, backed by both the World Bank and the IMF, aim to modernize Pakistan’s tax policy process and ensure that future budget decisions are data-driven, transparent, and growth-oriented.