Pakistan : Supporting Public Financial Management and Tax Policy
The TA will support the Government of Pakistan's public financial management reforms and support activities that concentrated on (i) formation of a tax revenue policy unit to separate tax policy and administration, (ii) cash management and forecasting, and (iii) design of a delegated financial authority regime.
Project Details
-
Project Officer
Miyaki, Yuji
Central and West Asia Department
Request for information -
Country/Economy
Pakistan -
Sector
- Public sector management
| Project Name | Supporting Public Financial Management and Tax Policy | ||||
| Project Number | 54382-002 | ||||
| Country / Economy | Pakistan |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Operational Priorities | OP6: Strengthening governance and institutional capacity |
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| Sector / Subsector | Public sector management / Public expenditure and fiscal management |
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| Gender | No gender elements | ||||
| Description | The TA will support the Government of Pakistan's public financial management reforms and support activities that concentrated on (i) formation of a tax revenue policy unit to separate tax policy and administration, (ii) cash management and forecasting, and (iii) design of a delegated financial authority regime. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Pakistan's economy has witnessed boom and bust cycles over the past decades, and the trend of growth has been on a downslide for the past few years due to the decline in economic growth followed by the financial crisis of 2008, for which the country sought assistance from IMF at different times. The International Monetary Fund (IMF) 3-year extended fund facility (EFF) of July 2019 was the 13th program since 1988. The IMF emphasized the need to change exchange rate determination policy, increase in energy prices to reduce off-budget liabilities, increase in interest rates, and reduction in fiscal deficit. Subsequently, the exchange rate depreciated by around 40%, interest rates increased to a high of 13.25%, and electricity prices increased by 15%. The result of these measures was that the current account deficit was reduced from USD19 billion in 2017-2018 to USD3 billion in 2019-2020. However, a number of key reforms which pave the way for fiscal adjustment under the IMF program remain unaddressed. | ||||
| Impact | Macroeconomic management strengthened and more sustained and inclusive growth supported |
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| Project Outcome | |
|---|---|
| Description of Outcome | Pakistan''s fiscal and debt sustainability are strengthened |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Establishment and operationalization of Tax Policy Unit in the Ministry of Finance Support in capacity building of cash management and forecasting mechanism in the Ministry of Finance Support in design of delegated financial authority regime |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | Miyaki, Yuji |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, CWRD |
| Executing Agencies |
Ministry of Economic Affairs, Economic Affairs Division |
| Timetable | |
|---|---|
| Concept Clearance | 26 Oct 2020 |
| Fact Finding | - |
| MRM | - |
| Approval | 08 Dec 2020 |
| Last Review Mission | - |
| Last PDS Update | 08 Dec 2020 |
TA 6662-PAK
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 08 Dec 2020 | 31 Dec 2020 | 31 Dec 2020 | 31 Dec 2022 | 31 Dec 2023 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 550,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 550,000.00 | 24 May 2023 | 259,029.38 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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| Title | Document Type | Document Date |
|---|---|---|
| Supporting Public Financial Management and Tax Policy: Technical Assistance Report | Technical Assistance Reports | Dec 2020 |
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