ISLAMABAD, March 9: Pakistan on Wednesday signed an agreement on Tax Administration Reforms Project (TARP) with the World Bank to be completed possibly in a period of five years.

Through the agreement, the World Bank has agreed to provide $125.9 million assistant to Pakistan for implementation of the project. Of the assistance $78.5 million would be IDA credit, $24.4 million IBRD loan and remaining $23 million would be DFID grant.

Secretary Economic Affairs Division Shuja Shah and World Bank Country Director John W. Wall signed the agreement. Central Board of Revenue Chairman M. Abdullah Yusuf and Member (Tax Policy & Reforms) M.S. Lal were also present on the occasion.

The objective of the project is to fundamentally reform the CBR. The project aims to facilitate and promote voluntary compliance, and more equitable application of tax laws.

Additionally, the new human resource policy framework and management system combined with modernized procedures and institutional structure will lead to an increase in transparency and integrity of the tax administration operations.