ISLAMABAD — The World Bank says Pakistan is making progress on reforms to improve tax collection and public spending, although significant challenges remain.
The lender rated implementation of the Pakistan Public Resources for Inclusive Development programme as moderately satisfactory while retaining a substantial overall risk rating.
The programme aims to strengthen government revenue, improve management of public funds and support better services for citizens.
In December 2025, the World Bank approved an initial $700 million financing package, including $600 million for federal reforms and $100 million for Sindh. The wider programme could provide up to $1.35 billion over multiple phases.
Approval does not mean the full amount has already been paid to Pakistan.
Progress on reforms
The World Bank’s assessment indicates that implementation is advancing, but government departments still face administrative and institutional difficulties.
The programme focuses partly on increasing tax revenue relative to the size of Pakistan’s economy. More effective tax collection could give the government greater capacity to finance essential services without relying as heavily on borrowing.
According to reporting on the assessment, delays involving the Pakistan Bureau of Statistics include the appointment of a chief statistician and arrangements for its governing council.
Such institutional issues matter because reliable statistics and effective public administration support economic planning and reform.
A moderately satisfactory rating is not confirmation that Pakistan has already met its revenue targets. Equally, a substantial risk rating does not mean the programme has failed.
The findings point to progress alongside difficulties that still need attention. The next measure of success will be whether reforms produce stronger revenue collection, more effective public spending and improvements that citizens can see.
Sources: World Bank programme announcement; World Bank implementation report; Dawn, October 15.