World Bank Approves Extension and Restructuring of Pakistan Raises Revenue Project

The World Bank has accepted the government’s request for the extension of the closing date and restructuring of the “Pakistan Raises Revenue (PRR)” project worth $400 million.

The bank through a letter communicated to the government that after due consideration, the International Development Association (IDA) has agreed to the request and consequently, the financing agreement is amended, besides the closing date is extended by one year to June 30, 2025.

The government has sought a one-year extension on PRR project worth $400 million financed by the World Bank to revise selected project development objective indicators to enhance attribution and to delink from measurements that no longer exist.

The Ministry of Economic Affairs restructuring paper proposes to

1. Extend the duration of the project by one year to June 30, 2025, to ensure adequate time for the completion of the IPF component of the project;
2. Revise selected PDO indicators to enhance attribution and to delink from measurements that no longer exist;
3. Revise select DLIs and IRIs to reflect the extended project duration; and
4. Revise select DLIs and verification protocols to reflect developments not envisioned during the design of the project.

The project is currently rated as satisfactory against progress towards the achievement of its development objective. It is currently rated as Satisfactory for progress towards achievement of Project Development Objectives (PDO).

So far, the project has disbursed US$291.31 million, which is about 74 percent of the total project amount of US$400 million. Recent mid-term review and implementation support missions have found notable achievements under the results-based component on several DLIs as well as progress on the implementation of the IPF component.

However, some PDO indicators need to be updated to reflect data availability and enhance attribution.