ISLAMABAD: The World Bank will help the Khyber Pakhtunkhwa government prepare a programme to increase provincial tax collection and improve the management of public resources.
The project, for which the International Development Association (IDA) will provide a credit of $100 million, will fund expenditures of the main government entities responsible for implementing the Public Financial Management (PFM) reform strategy for the period 2017-20.
The overall objective of putting in place a robust PFM system is to ensure financial compliance, facilitate prioritisation amongst competing claims on scarce resources, encourage efficient delivery of public services and achieve the ultimate goal of efficient, effective and accountable use of public resources.
The ‘Khyber Pakhtunkhwa Revenue Mobilisation and Public Resource Management’ project will use the ‘Programme for Results’ (PforR) financing instrument which will support the implementation of the KP government’s PFM reform strategy.
The proposed project will seek an increase in KP government’s own source revenue both tax and non-tax through expanding the tax base without imposing new taxes or raising tax rates.
A World Bank document related to the project says it will help improve the management of public resources, notably budget funds and dedicated funds such as the province’s pension fund and hydel development fund.
Where relevant, the project will need to include the new districts of former Fata and local government bodies as constituted in the interventions and results sought. It will result in much desired increased fiscal space to improve service delivery across the province.
Published in Dawn, May 19th, 2019