Pakistan

Type of profile
Country
Overview

Recent reform steps and outlook

Between July 2019 and April 2021, there had been a 19% increase in domestic tax revenue. This progress came as a result of the following changes: 

  • Increased digitisation of revenue mobilisation systems and processes, including tax registration, refund and exemption applications, as well as audits and assessments; 

  • Broadening the tax base allowed for a rise in the number of taxpayers; 

  • Pakistan’s Federal Bank of Revenue (FBR) developed new protocols for capturing relevant data whilst also ensuring non-residents and their permanent establishments were paid as required; and 

  • Development of Trace and Track rules in supply chains.  

Progress achieved in 2019

During 2019, Pakistan has been able to automate several tax processes, which reduced tax bureaucracy. The Pakistan government introduced new tax-oriented subdivisions in the FBR and across multiple regions to facilitate effective and reliable tax administration. The Large Tax Payers Office (LTPO) and the Office of Chief’s Inland Revenue – Analysis Unit were created to effectively manage high turnover revenues and develop evidence-based analyses and indicators to inform decision-making. The responsibility for collecting large taxes was reallocated from Regional Tax Offices to the LTPO, which facilitated effective auditing and enforcement of tax policies. The government also made amendments to relevant fiscal laws to rationalise tax rates and exemptions, and placed greater emphasis on internal auditing and inspections to ensure coherence and compliance with fiscal laws.  

Ensuring policy coherence for development

The Pakistani government has established inter-departmental collaboration between various federal and provincial offices to ensure effective coordination of tax policies and regulations. In addition to the LTPO and Inland Revenue tax Units, the centralised Ministry of Finance created the Financial Monitoring Unit (FMU) to ensure dissemination of information across governmental agencies. Pakistan has long established the necessary legislative policies to tackle illicit financial activity, such as the Foreign Exchange Regulation Act of 1947 and the Anti-Money Laundering Act of 2010.  

Pakistan has been an active participant in several international tax cooperation platforms and has committed to adopting and implementing international tax standards and agreements. As a member of the Global Forum, they have ratified the Multilateral Competent Authority Agreement of Administrative Assistance in Tax Matters. They have also signed the Multilateral Competent Authority Agreements on Exchange of Financial Accounts Information and Country-by-Country Reporting. Thereby, ensuring coherence with international tax transparency and reporting standards. 

Pakistan provides tax credits on investments related to shares, health insurance, job creation by manufacturers, graduate employers and newly-established industrial undertakings. Pakistan is also updating its double taxation agreements, in order to align them with the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting’s (MLI) actions and provisions. 

DRM Project Data as Recipient

all
2015
2016
2017
2018
2019
Donante
year Año
No. project
amount Commitment
disbursement Desembolso
Germany
year all
8 projects
amount 8 054 289.17 USD
disbursement 4 748 490.61 USD
Support to Good Governance
year 2015
1 project
amount 0.00 USD
disbursement 1 264 550.00 USD
Support to Good Governance
year 2016
1 project
amount 1 586 862.77 USD
disbursement 1 144 920.70 USD
Support to Local Governance Programme
year 2016
1 project
amount 1 244 056.18 USD
disbursement 10 809.40 USD
Support to Local Governance Programme
year 2017
1 project
amount 662 270.32 USD
disbursement 847 670.93 USD
Support to Good Governance
year 2017
1 project
amount 0.00 USD
disbursement 536 845.87 USD
Support to Local Governance Programme
year 2018
1 project
amount 531 098.78 USD
disbursement 611 021.95 USD
Support to Local Governance Programme II
year 2019
1 project
amount 4 030 001.12 USD
disbursement 3 332.60 USD
Support to Local Governance Programme
year 2019
1 project
amount 0.00 USD
disbursement 329 339.16 USD
United Kingdom
year all
31 projects
amount 29 793 882.61 USD
disbursement 28 482 410.86 USD
Sub.national Governance Programme: Khyber Pakhunkhwa
year 2015
1 project
amount 0.00 USD
disbursement 394 270.00 USD
Economic advocacy and knowledge development
year 2015
1 project
amount 2 107 480.00 USD
disbursement 1 823 300.00 USD
World Bank Trust Fund – Stability and Growth Programme
year 2015
1 project
amount 10 695 190.00 USD
disbursement 6 417 180.00 USD
HMRC Techincal Support to Federal Board of Revenue Pakistan
year 2015
1 project
amount 3 060.00 USD
disbursement 62 300.00 USD
Service Provider to deliver the Sub National Gov...
year 2016
1 project
amount 486 944.65 USD
disbursement 394 927.00 USD
Economic advocacy and knowledge development
year 2016
1 project
amount 634 131.16 USD
disbursement 564 693.70 USD
World Bank Trust Fund – Stability and Growth Pro...
year 2016
1 project
amount 7 208 493.93 USD
disbursement 5 946 153.80 USD
Her Majesty's Revenue & Customs Technical Suppor...
year 2016
1 project
amount 76 602.28 USD
disbursement 49 611.50 USD
World Bank Trust Fund - Stability and Growth Pro...
year 2016
1 project
amount 312 955.47 USD
disbursement 312 955.50 USD
HMRC tax capacity building technical assistance to the Federal Board of Revenue
year 2016
1 project
amount 5 400.00 USD
disbursement 4 390.00 USD
Peer to Peer HMRC Tax Capacity Building - Pakistan
year 2017
1 project
amount 243 783.72 USD
disbursement 243 783.72 USD
Service Provider to deliver the Sub National Governance Programme
year 2017
1 project
amount 0.00 USD
disbursement 318 456.00 USD
Her Majesty's Revenue & Customs Techincal Support to Federal Board of Revenue Pakistan
year 2017
1 project
amount 0.00 USD
disbursement 285 997.00 USD
Economic advocacy and knowledge development
year 2017
1 project
amount 0.00 USD
disbursement 0.00 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2017
1 project
amount 30 884.63 USD
disbursement 30 884.63 USD
World Bank Trust Fund - Stability and Growth Programme - Internationl Climate Fund
year 2017
1 project
amount 0.00 USD
disbursement 123 896.00 USD
World Bank Trust Fund – Stability and Growth Programme
year 2017
1 project
amount 0.00 USD
disbursement 3 655 325.00 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2018
1 project
amount 25 854.34 USD
disbursement 25 854.34 USD
Service Provider to deliver the Sub National Governance Programme
year 2018
1 project
amount 96 202.00 USD
disbursement 129 099.00 USD
World Bank Trust Fund – Stability and Growth Programme
year 2018
1 project
amount 2 295 865.00 USD
disbursement 183 209.28 USD
Her Majesty's Revenue & Customs Techincal Support to Federal Board of Revenue Pakistan
year 2018
1 project
amount 323 719.13 USD
disbursement 323 719.13 USD
Peer to Peer HMRC Tax Capacity Building - Pakistan
year 2018
1 project
amount 394 138.19 USD
disbursement 394 138.19 USD
Procurement of Common Reporting Standard (CRS) System for Federal Board of Revenue - Pakistan
year 2018
1 project
amount 1 858 296.00 USD
disbursement 1 936 968.00 USD
Poverty and Growth Programme
year 2018
1 project
amount 293.00 USD
disbursement 3 708.00 USD
World Bank Trust Fund for Economic Reforms (Pakistan@100)
year 2019
1 project
amount 280 755.49 USD
disbursement 526 416.54 USD
Peer to Peer HMRC Tax Capacity Building - Pakistan
year 2019
1 project
amount 792 139.82 USD
disbursement 792 139.82 USD
World Bank Trust Fund – Stability and Growth Programme
year 2019
1 project
amount 1 563 158.00 USD
disbursement 3 186 294.03 USD
Her Majesty's Revenue & Customs Techincal Support to Federal Board of Revenue Pakistan
year 2019
1 project
amount 336 006.00 USD
disbursement 345 466.00 USD
Procurement of Common Reporting Standard (CRS) System for Federal Board of Revenue - Pakistan
year 2019
1 project
amount 15 244.00 USD
disbursement 0.00 USD
Service Provider to deliver the Sub National Governance Programme
year 2019
1 project
amount 64.00 USD
disbursement 52.88 USD
Administrators
year 2019
1 project
amount 7 221.80 USD
disbursement 7 221.80 USD
United States of America
year all
1 project
amount 8 000.00 USD
disbursement 8 000.00 USD
Desk Study . Islamabad Vehicle Tax Collection Pilot Project, through U.S. Government . Trade and Development Agency
year 2015
1 project
amount 8 000.00 USD
disbursement 8 000.00 USD
Hungary
year all
2 projects
amount 2 184.40 USD
disbursement 2 184.41 USD
Taxation workshop - two times per year week-long seminars on tax related issues in co-organisation with the OECD under its Global Relations Programme
year 2016
1 project
amount 1 000.19 USD
disbursement 1 000.20 USD
Taxation workshop - two times per year week-long seminars on tax related issues in co-organisation with the OECD under its Global Relations Programme.
year 2017
1 project
amount 1 184.21 USD
disbursement 1 184.21 USD
Japan
year all
5 projects
amount 24 812.37 USD
disbursement 24 812.29 USD
TC Aggregated Activities
year 2016
1 project
amount 9 815.93 USD
disbursement 9 815.90 USD
TC Aggregated Activities
year 2016
1 project
amount 5 027.45 USD
disbursement 5 027.40 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 4 055.87 USD
disbursement 4 055.87 USD
TC AGGREGATED ACTIVITIES
year 2018
1 project
amount 3 368.41 USD
disbursement 3 368.41 USD
N/A
year 2019
1 project
amount 2 544.71 USD
disbursement 2 544.71 USD
South Korea
year all
4 projects
amount 48 714.00 USD
disbursement 46 062.00 USD
Master`s Degree Program in Finance and Tax Policy(17-19)
year 2017
1 project
amount 33 913.00 USD
disbursement 31 261.00 USD
WCO RTC Seminar on IT and Single Window
year 2018
1 project
amount 9 424.00 USD
disbursement 9 424.00 USD
Master's Degree Program in Finance and Tax Policy(2017)
year 2018
1 project
amount 1 434.00 USD
disbursement 1 434.00 USD
AEO Trade Facilitation Workshop
year 2018
1 project
amount 3 943.00 USD
disbursement 3 943.00 USD
Totals
year all
51 projects
amount 37 931 882.55 USD
disbursement 33 311 960.17 USD
Donante
year Año
No. project
amount Commitment
disbursement Desembolso
Germany
year 2015
1 project
amount 0.00 USD
disbursement 1 264 550.00 USD
Support to Good Governance
year 2015
1 project
amount 0.00 USD
disbursement 1 264 550.00 USD
United Kingdom
year 2015
4 projects
amount 12 805 730.00 USD
disbursement 8 697 050.00 USD
Sub.national Governance Programme: Khyber Pakhunkhwa
year 2015
1 project
amount 0.00 USD
disbursement 394 270.00 USD
Economic advocacy and knowledge development
year 2015
1 project
amount 2 107 480.00 USD
disbursement 1 823 300.00 USD
World Bank Trust Fund – Stability and Growth Programme
year 2015
1 project
amount 10 695 190.00 USD
disbursement 6 417 180.00 USD
HMRC Techincal Support to Federal Board of Revenue Pakistan
year 2015
1 project
amount 3 060.00 USD
disbursement 62 300.00 USD
United States of America
year 2015
1 project
amount 8 000.00 USD
disbursement 8 000.00 USD
Desk Study . Islamabad Vehicle Tax Collection Pilot Project, through U.S. Government . Trade and Development Agency
year 2015
1 project
amount 8 000.00 USD
disbursement 8 000.00 USD
Totals
year 2015
6 projects
amount 12 813 730.00 USD
disbursement 9 969 600.00 USD
Donante
year Año
No. project
amount Commitment
disbursement Desembolso
Germany
year 2016
2 projects
amount 2 830 918.95 USD
disbursement 1 155 730.10 USD
Support to Good Governance
year 2016
1 project
amount 1 586 862.77 USD
disbursement 1 144 920.70 USD
Support to Local Governance Programme
year 2016
1 project
amount 1 244 056.18 USD
disbursement 10 809.40 USD
United Kingdom
year 2016
6 projects
amount 8 724 527.49 USD
disbursement 7 272 731.50 USD
Service Provider to deliver the Sub National Gov...
year 2016
1 project
amount 486 944.65 USD
disbursement 394 927.00 USD
Economic advocacy and knowledge development
year 2016
1 project
amount 634 131.16 USD
disbursement 564 693.70 USD
World Bank Trust Fund – Stability and Growth Pro...
year 2016
1 project
amount 7 208 493.93 USD
disbursement 5 946 153.80 USD
Her Majesty's Revenue & Customs Technical Suppor...
year 2016
1 project
amount 76 602.28 USD
disbursement 49 611.50 USD
World Bank Trust Fund - Stability and Growth Pro...
year 2016
1 project
amount 312 955.47 USD
disbursement 312 955.50 USD
HMRC tax capacity building technical assistance to the Federal Board of Revenue
year 2016
1 project
amount 5 400.00 USD
disbursement 4 390.00 USD
Hungary
year 2016
1 project
amount 1 000.19 USD
disbursement 1 000.20 USD
Taxation workshop - two times per year week-long seminars on tax related issues in co-organisation with the OECD under its Global Relations Programme
year 2016
1 project
amount 1 000.19 USD
disbursement 1 000.20 USD
Japan
year 2016
2 projects
amount 14 843.38 USD
disbursement 14 843.30 USD
TC Aggregated Activities
year 2016
1 project
amount 9 815.93 USD
disbursement 9 815.90 USD
TC Aggregated Activities
year 2016
1 project
amount 5 027.45 USD
disbursement 5 027.40 USD
Totals
year 2016
11 projects
amount 11 571 290.01 USD
disbursement 8 444 305.10 USD
Donante
year Año
No. project
amount Commitment
disbursement Desembolso
Germany
year 2017
2 projects
amount 662 270.32 USD
disbursement 1 384 516.80 USD
Support to Local Governance Programme
year 2017
1 project
amount 662 270.32 USD
disbursement 847 670.93 USD
Support to Good Governance
year 2017
1 project
amount 0.00 USD
disbursement 536 845.87 USD
South Korea
year 2017
1 project
amount 33 913.00 USD
disbursement 31 261.00 USD
Master`s Degree Program in Finance and Tax Policy(17-19)
year 2017
1 project
amount 33 913.00 USD
disbursement 31 261.00 USD
United Kingdom
year 2017
7 projects
amount 274 668.35 USD
disbursement 4 658 342.35 USD
Peer to Peer HMRC Tax Capacity Building - Pakistan
year 2017
1 project
amount 243 783.72 USD
disbursement 243 783.72 USD
Service Provider to deliver the Sub National Governance Programme
year 2017
1 project
amount 0.00 USD
disbursement 318 456.00 USD
Her Majesty's Revenue & Customs Techincal Support to Federal Board of Revenue Pakistan
year 2017
1 project
amount 0.00 USD
disbursement 285 997.00 USD
Economic advocacy and knowledge development
year 2017
1 project
amount 0.00 USD
disbursement 0.00 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2017
1 project
amount 30 884.63 USD
disbursement 30 884.63 USD
World Bank Trust Fund - Stability and Growth Programme - Internationl Climate Fund
year 2017
1 project
amount 0.00 USD
disbursement 123 896.00 USD
World Bank Trust Fund – Stability and Growth Programme
year 2017
1 project
amount 0.00 USD
disbursement 3 655 325.00 USD
Hungary
year 2017
1 project
amount 1 184.21 USD
disbursement 1 184.21 USD
Taxation workshop - two times per year week-long seminars on tax related issues in co-organisation with the OECD under its Global Relations Programme.
year 2017
1 project
amount 1 184.21 USD
disbursement 1 184.21 USD
Japan
year 2017
1 project
amount 4 055.87 USD
disbursement 4 055.87 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 4 055.87 USD
disbursement 4 055.87 USD
Totals
year 2017
12 projects
amount 976 091.75 USD
disbursement 6 079 360.23 USD
Donante
year Año
No. project
amount Commitment
disbursement Desembolso
Germany
year 2018
1 project
amount 531 098.78 USD
disbursement 611 021.95 USD
Support to Local Governance Programme
year 2018
1 project
amount 531 098.78 USD
disbursement 611 021.95 USD
South Korea
year 2018
3 projects
amount 14 801.00 USD
disbursement 14 801.00 USD
WCO RTC Seminar on IT and Single Window
year 2018
1 project
amount 9 424.00 USD
disbursement 9 424.00 USD
Master's Degree Program in Finance and Tax Policy(2017)
year 2018
1 project
amount 1 434.00 USD
disbursement 1 434.00 USD
AEO Trade Facilitation Workshop
year 2018
1 project
amount 3 943.00 USD
disbursement 3 943.00 USD
United Kingdom
year 2018
7 projects
amount 4 994 367.66 USD
disbursement 2 996 695.94 USD
HMRC Tax Leadership Training provided through Commonwealth Association of Tax Administrators
year 2018
1 project
amount 25 854.34 USD
disbursement 25 854.34 USD
Service Provider to deliver the Sub National Governance Programme
year 2018
1 project
amount 96 202.00 USD
disbursement 129 099.00 USD
World Bank Trust Fund – Stability and Growth Programme
year 2018
1 project
amount 2 295 865.00 USD
disbursement 183 209.28 USD
Her Majesty's Revenue & Customs Techincal Support to Federal Board of Revenue Pakistan
year 2018
1 project
amount 323 719.13 USD
disbursement 323 719.13 USD
Peer to Peer HMRC Tax Capacity Building - Pakistan
year 2018
1 project
amount 394 138.19 USD
disbursement 394 138.19 USD
Procurement of Common Reporting Standard (CRS) System for Federal Board of Revenue - Pakistan
year 2018
1 project
amount 1 858 296.00 USD
disbursement 1 936 968.00 USD
Poverty and Growth Programme
year 2018
1 project
amount 293.00 USD
disbursement 3 708.00 USD
Japan
year 2018
1 project
amount 3 368.41 USD
disbursement 3 368.41 USD
TC AGGREGATED ACTIVITIES
year 2018
1 project
amount 3 368.41 USD
disbursement 3 368.41 USD
Totals
year 2018
12 projects
amount 5 543 635.85 USD
disbursement 3 625 887.30 USD
Donante
year Año
No. project
amount Commitment
disbursement Desembolso
Germany
year 2019
2 projects
amount 4 030 001.12 USD
disbursement 332 671.76 USD
Support to Local Governance Programme II
year 2019
1 project
amount 4 030 001.12 USD
disbursement 3 332.60 USD
Support to Local Governance Programme
year 2019
1 project
amount 0.00 USD
disbursement 329 339.16 USD
United Kingdom
year 2019
7 projects
amount 2 994 589.11 USD
disbursement 4 857 591.07 USD
World Bank Trust Fund for Economic Reforms (Pakistan@100)
year 2019
1 project
amount 280 755.49 USD
disbursement 526 416.54 USD
Peer to Peer HMRC Tax Capacity Building - Pakistan
year 2019
1 project
amount 792 139.82 USD
disbursement 792 139.82 USD
World Bank Trust Fund – Stability and Growth Programme
year 2019
1 project
amount 1 563 158.00 USD
disbursement 3 186 294.03 USD
Her Majesty's Revenue & Customs Techincal Support to Federal Board of Revenue Pakistan
year 2019
1 project
amount 336 006.00 USD
disbursement 345 466.00 USD
Procurement of Common Reporting Standard (CRS) System for Federal Board of Revenue - Pakistan
year 2019
1 project
amount 15 244.00 USD
disbursement 0.00 USD
Service Provider to deliver the Sub National Governance Programme
year 2019
1 project
amount 64.00 USD
disbursement 52.88 USD
Administrators
year 2019
1 project
amount 7 221.80 USD
disbursement 7 221.80 USD
Japan
year 2019
1 project
amount 2 544.71 USD
disbursement 2 544.71 USD
N/A
year 2019
1 project
amount 2 544.71 USD
disbursement 2 544.71 USD
Totals
year 2019
10 projects
amount 7 027 134.94 USD
disbursement 5 192 807.54 USD

Resources

There are no resources available.