The Asian Development Bank (ADB) will provide technical assistance worth $950,000 (around Rs. 195 million) to Pakistan to support tax administration and pension system reforms.
Speaking to Propakistani, sources revealed that the government requested ADB Technical Assistance to support tax and pension reforms that provide the basis for the “Improved Domestic Resource Mobilization Reform Program,” a program recently proposed by ADB.
Sources have also revealed that an extensive consultation mission from ADB reached an agreement with the government on the scope and coverage, results framework, implementation arrangements, and cost estimates of the Technical Assistance.
The technical assistance worth $950,000 would be used to support the design and implementation of detailed policy actions under the premises of the proposed program. It is also intended for the development of capacity in the executing and implementing agencies.
The grant would also be aimed at supporting policy dialogue with the government to improve awareness and understanding of international standards, best practices, and lessons learned in the tax administration and pension system reform areas.
The funding will be financed on a grant basis by ADB’s Technical Assistance Special Fund. The government will provide counterpart support in the form of counterpart staff, office space, office supplies, secretarial assistance, domestic transportation, and other in-kind contributions. ADB has also informed the government that approval of the technical assistance does not commit the bank to finance any ensuing project.
The urgent need for technical assistance and the proposed program stems from the extremely challenging macroeconomic and fiscal situation that the country frequently finds itself in and efforts by different governments to substantively address the longstanding structural factors behind this perennial cycle with support from development partners.