Pakistan, World Bank Group sign $918 million loan agreements
Dr Abdul Hafeez Shaikh witnessed the signing ceremony.
ISLAMABAD (Dunya News) – Pakistan and the World Bank Group on Tuesday signed three loan agreements worth US $918 million to help support revenue mobilisation and higher education development in the country.
The agreements were signed by Secretary, Economic Affairs Division, Noor Ahmed on behalf of federal government, WB Country Director and World Bank, Patchamuthu Illangovan while the representatives of Higher Education Commission (HEC) and Government of Khyber Pakhtunkhwa signed their respective Project Agreements.
Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, Dr Abdul Hafeez Shaikh, witnessed the signing ceremony.
Of the total amount, $400 million will be utilised in a programme aimed at increasing the domestic revenue of Pakistan by broadening the tax base and facilitating compliance.
The targets of the revenue programme include increasing Pakistan’s tax to GDP ratio to 17 percent, increasing the number of active tax payers to 3.5 million, reducing the compliance burden of paying taxes and improving the efficiency of custom controls.
Another $400 million will be spent in the development of higher education programme in Pakistan. The amount will be used to support the research excellence in strategic sectors of the economy, and improve teaching and learning, and strengthening governance in the higher education sector.
The remaining $118 million will be used for the revenue mobilisation and resource management programme of Khyber Pakhtunkhwa (KP).
The programme will help the provincial government of KP to mobilise its own source revenue to address the constraint of limited fiscal space for investment and public service provision and efficient and strategic use of the province’s financial resources.
Mr Sheikh expressed his gratitude to the World Bank Group for extending continuous support to Pakistan in its efforts to achieve the sustainable economic development of the country.
