Islamabad: The Government of Pakistan has approved a proposed USD 200 million foreign-funded project to modernise and digitise the Federal Board of Revenue (FBR), taking total foreign financing for Pakistan’s tax reforms to nearly USD 4.9 billion. The news has been sourced from an article published on September 12.
According to the details, the Central Development Working Party (CDWP) has recommended the Transforming and Digitalising Revenue Administration (TADRA) project, valued at PKR 57.1 billion, for consideration by the Executive Committee of the National Economic Council (ECNEC).
The project is proposed to be financed through an Asian Development Bank (ADB) loan and will be implemented over 5 years. Of the total project cost, USD 81 million (PKR 22.5 billion) has been allocated for consultancy services, while another USD 10 million has been earmarked for project management. The loan is expected to be repaid over 25 years, with an interest rate ranging between 1.5% and 2% per annum.
The TADRA project aims to strengthen domestic resource mobilisation by accelerating the digital transformation of Pakistan’s revenue administration system. It will support the implementation of the FBR Transformation Plan 2024-28, with a focus on operational efficiency, taxpayer compliance and expansion of the tax base.
The FBR has set a target of increasing active registered taxpayers from 7 million to 12 million and raising the tax-to-GDP ratio from the current 10.3% to 13.5% by 2029.
The targets have been proposed as part of ongoing efforts to strengthen revenue mobilisation, following challenges in meeting tax collection targets over the past two fiscal years. The project forms part of the FBR’s PKR 350 billion Transformation Plan 2024-28, which includes upgrades to its digital infrastructure. Official documents state that FBR server capacity is being increased from 850 terabytes to 3 petabytes. Loan negotiations for TADRA are expected to begin shortly.
