During the CDWP meeting chaired by Federal Minister for Planning, Ahsan Iqbal, the Investment Project Financing (IPF) component of the Pakistan Raises Revenue Project (Revised) was referred to the Executive Committee of the National Economic Council (ECNEC) for further consideration.
The project carries a total cost of Rs. 21.518 billion and aims to revolutionize revenue generation and tax administration in the country. The project is proposed to be financed through foreign funding.
The primary focus of Pakistan Raises Revenue Project is to achieve sustainable revenue growth and expand the tax base while implementing a well-developed strategic plan. The envisioned outcome is the transformation of the Federal Board of Revenue (FBR) into a technologically advanced, taxpayer-centric, and semi-autonomous revenue authority, providing it with greater financial, managerial, and operational autonomy. To achieve this, FBR has initiated multiple tax reform initiatives.
The IPF component of the project specifically targets the enhancement of FBR’s Information Communication and Technology (ICT) systems. This includes the establishment of a high-capacity Data Warehouse to facilitate comprehensive analysis of big data and the integration of databases.
Additionally, the project aims to replace end-of-life equipment in FBR’s data centers, ensuring smooth and efficient operations.
The IPF component seeks to improve the accessibility of FBR’s services in areas with limited access to tax offices. By focusing on digital solutions, the project aims to create an enabling environment for FBR to align its operations with the overarching strategy of Digital Pakistan envisioned by the Government of Pakistan.
The revised project sets forth several key objectives, including reducing tax expenditures to alleviate the country’s fiscal constraints, expanding the tax base to increase tax receipts, and modernizing FBR’s operations through advanced ICT capabilities. Ultimately, the project envisions an efficient and technologically-equipped FBR that can effectively administer tax affairs and contribute to the overall development of the nation.
The referral of Pakistan Raises Revenue Project to ECNEC reflects the government’s commitment to strengthening revenue generation and tax administration in Pakistan. The project will play a vital role in driving fiscal growth, improving tax compliance, and paving the way for a more efficient and transparent tax system in the country.
