World Bank Rates Progress on Pakistan’s $400 Million Revenue Project

The Disbursement Linked Indicators (DLIs) regarding reduction in withholding tax (WHT) lines and implementation of track and trace system are lagging behind the targets under the Pakistan Raises Revenue project, says the World Bank. Official documents revealed that the Bank has rated the overall implementation progress of the Pakistan Raises Revenue project of worth $400 million moderately satisfactory, observing that the Federal Board of Revenue (FBR) will prepare a strategy to address challenges and improve the implementation of DLIs. The Bank’s official documents revealed that $327.93 million, i.e. 81.98 percent of the financing has been disbursed so far while the undisbursed amount stands at $64.35 million. The Bank has stated that overall satisfactory progress is noted towards the achievement of project development objectives. There is improved performance in several Disbursement Linked Indicators (DLIs), as confirmed by the third-party validation report and the World Bank team. It includes: The annual report for fiscal year 2024 is being finalized (DLI 10). However, DLIs 1 (reduction in WHT lines) and 4 (implementation of track and trace system) are lagging behind relevant targets. FBR will prepare a strategy to address challenges and improve the implementation of these DLIs. The procurements under component 2 have shown substantial progress. In particular, large procurements of hardware and software for data centers, and equipment for customs automated entry-exit systems are in process. The technical streams have not been established in FBR. However, FBR officers are assigned to different positions relevant to technical/core and non-core functions, such as procurement, internal audit, communications, etc. To design/re-design training for core and non-core functions, a need-based training plan is being developed by FBR. Procurement is underway for AEES-related hardware and software, to be delivered by December 2024 / January 2025. Some components of the Automatic Entry & Exit System (AEES) are being introduced including the Pre-Arrival Clearance system deployed in WeBOC. Under this setting, Terminal Operators (TOs) are getting electronic messaging regarding the release of cargo before the arrival of the vessel. In collaboration with the collectorate of Customs Appraisement (East) and South Asia Pacific Terminal (SAPT), a pilot run of Automated Exit has been conducted. The collectorates are liaising with TOs to make necessary adjustments in their business processes, hardware, and software to put in place the requisite system for fully functional AEES.