World Bank flags substantial risks to Pakistan's tax reforms
The World Bank report on Pakistan economy rates the tax reform program moderately satisfactory but flags governance risks and delays in filling the chief statistician post.
The World Bank rated Pakistan's tax reform program moderately satisfactory but assigned it a substantial risk rating for implementation.
Political and governance challenges were cited, alongside risks linked to the economy, institutional capacity and financial management.
The target is raising the tax-to-GDP ratio from 12.3% in June 2025 to 15% by June 2030.
The chief statistician post has been vacant since September 24, 2026, although a program requirement says it must stay filled.
A separate $70 million Connected Punjab Program was rated moderate-to-substantial risk.