World Bank rates $118m KP project as ‘moderately satisfactory’
ISLAMABAD: The World Bank has rated the implementation progress of the “Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management” project of around $118 million as moderately satisfactory.
The project was approved in June 2019 with the development objective of increasing the collection of Khyber Pakhtunkhwa own source revenues, and improve the management of public resources. The closing date of the project is end June 2026.
Official documents revealed that the project became effective on June 18, 2019, with original closing date of 31 December 2024. However, the project delayed and the cost was revised to $110.85 million while the closing date to end June 2026. So far $96.36 million were disbursed while $19.05 million remained undisbursed.
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Progress towards achievement of project development objective is also rated as moderately satisfactory.
The programme has recently made good implementation progress. The key achievements include efforts to improve cash management, digitising Urban Immovable Property Tax records in 10 cities, spending 82 per cent of Annual Development Funds on capital investments in fiscal year 2024, and rolling out the Financial Management Information System (FMIS) to 127 Tehsil municipal authorities. The operation support unit and shared services unit have been revamped, and plans have been revised to align with the programme’s revised timeline.
According to the bank documents, as per revised estimates, Khyber Pakhtunkhwa collected tax revenues of Rs56 billion from own sources in fiscal year 2024. Around 57 per cent of tax revenue was collected from sales tax, whereas, 25 per cent of tax revenue was collected from land revenue, stamp duty, property tax, and motor vehicle tax. Final audited numbers for tax revenue collection will be available by June 2025.
The province’s tax collections up to February 2025 was Rs36 billion or USD 129 million, against the target of USD 212 million. The provisional numbers for own source tax collections during fiscal year 2025 will be available by June 2025.
Copyright Business Recorder, 2025