Pakistan Raises Revenue

The objective of the Raises Revenue Project for Pakistan is to contribute to a sustainable increase in domestic revenue by broadening the tax base and facilitating compliance. The project is a five-year investment project financing (IPF) operation with disbursement-linked indicators (DLIs) that has two components: (a) component one: results-based component, and (b) component two: a traditional IPF component that finances investments in ICT. Component one will disburse against documented execution of eligible expenditures under the Eligible Expenditure Programs (EEPs) and the achievement and verification of the DLI targets. This US dollar 320 million component comprises four objectives areas with 10 DLIs. The DLIs have been selected to capture the key interventions and intermediate results that directly contribute to the PDO and PDO indicators. Table 3 provides the rationale for the selection and expected contribution of each DLI to the PDO indicators. The names of the DLIs and formulations of DLRs are designed for clarity to the FBR and its officers charged with the implementation of the project. Verification protocols are intentionally specific and provide more details of the content of the targets to facilitate monitoring and verification. The DLIs and DLRs should be read in conjunctions with the verification protocols in pages 51-55. Under component two (traditional IPF): investment in the FBR’s ICT systems. This US dollar 80 million component will finance the supply and installation of ICT equipment and software, and of cargo weighing, contactless scanning, and laboratory equipment for customs inspections (goods). It will also finance consulting and non-consulting services for software development, technical assistance (TA), and training for complex interventions (e.g., business process improvement, change management). It comprises the following activities.